If a corporation declares a 10% stock dividend on its common shares, the account to be debited on the date of declaration is
A) Common Stock Dividends Distributable.
B) Common Shares.
C) Cash.
D) Stock Dividends (Retained Earnings).

Question

Quizplus · Accepted Answer

When a corporation declares a stock dividend, it transfers an amount from Retained Earnings to Stock Dividends Distributable. This reflects the allocation of retained earnings to the dividend, not an immediate cash or common stock transaction.

If a Corporation Declares a 10% Stock Dividend on Its