The entry to record a stock dividend depends on its size. Which of the following percentages is the upper limit for a stock dividend to be classified as a small stock dividend?

Question

Quizplus · Accepted Answer

The upper limit for a stock dividend to be classified as a small stock dividend is generally considered to be 25%. If a stock dividend is above this percentage, it is typically classified as a large stock dividend, which has different accounting treatment.

The Entry to Record a Stock Dividend Depends on Its