The balance in Common Stock Dividend Distributable should be reported as a(n)
A) deduction from common stock issued.
B) addition to capital stock.
C) current liability.
D) contra current asset.

Question

Quizplus · Accepted Answer

The balance in Common Stock Dividend Distributable is reported as an addition to capital stock because it represents amounts that are set aside to be converted into common stock and is part of shareholders' equity, not a liability or asset.

The Balance in Common Stock Dividend Distributable Should Be Reported