At what payout percentage is a stock dividend typically considered a stock split, in accordance with the recommendation of the Financial Accounting Standards Board?
A) 10%
B) 15%
C) 25%
D) 33%

Question

Quizplus · Accepted Answer

According to the recommendation of the Financial Accounting Standards Board, a stock dividend is considered a stock split if the payout percentage is 25% or higher. Therefore, the correct choice is C.

At What Payout Percentage Is a Stock Dividend Typically Considered