If the statement of financial position is prepared after a stock dividend has been declared but before it has been distributed, the stock dividend distributable would be reported in the
A)liabilities section.
B)shareholders' equity section.
C)assets section.
D)It would not be reported in the statement of financial position.

Question

Quizplus · Accepted Answer

Stock dividend distributable is reported in the shareholders' equity section as it represents an amount that will be transferred from retained earnings to paid-in capital once the stock dividend is distributed.

If the Statement of Financial Position Is Prepared After a Stock