On which of the following dates should the dividends payable account be recorded in the company records for a stock dividend?
A) Date of declaration.
B) No liability is associated with a share dividend.
C) Date of payment.
D) Date of record.

Question

Quizplus · Accepted Answer

A stock dividend does not create a liability as it involves issuing additional shares rather than paying cash, so no dividends payable account is recorded.

On Which of the Following Dates Should the Dividends Payable