All of the following are reasons for issuing small stock dividends except:
A)it does not reduce the assets of the company.
B)it provides an opportunity for the company to capitalize its retained earnings.
C)it allows the company to issue a dividend without recording it in their records.
D)it allows the shareholders the option of keeping the shares or selling them for cash.

Question

Quizplus · Accepted Answer

Issuing a small stock dividend still requires the company to record the dividend in their records, so it does not allow them to issue a dividend without recording it. The other choices are all valid reasons for issuing small stock dividends.

All of the Following Are Reasons for Issuing Small Stock