A share dividend is not a liability on the balance sheet because it does not require a distribution of assets.

Name: A share dividend is not a liability on the balance sheet because it does not require a distribution of assets.
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Quizplus · Accepted Answer

A share dividend is a distribution of additional shares to existing shareholders and does not require a distribution of assets, therefore it is not considered a liability on the balance sheet.

A Share Dividend Is Not a Liability on the Balance