Asked by
Kristie Jones
on Oct 15, 2024
Verified
Declaration of a stock dividend results in a liability being recorded.
Stock Dividend
A payment made to shareholders in the form of additional shares, rather than cash, reflecting the company's decision to reinvest the profit.
Liability
A company's legal financial debts or obligations that arise during the course of business operations.
- Acquire knowledge on the implications for accounting and finance when dividends are declared and paid on equity and retained earnings of shareholders.
Verified Answer
HG
Learning Objectives
- Acquire knowledge on the implications for accounting and finance when dividends are declared and paid on equity and retained earnings of shareholders.
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