Which of the following is true?
A)The declaration of a stock dividend gives rise to a liability.
B)Stock dividends are revocable by the board of directors at any time before they are issued.
C)Undeclared dividends in arrears on cumulative preferred shares are recorded as a liability.
D)No note disclosure is required for the declaration of a stock split.

Question

Quizplus · Accepted Answer

Undeclared dividends in arrears on cumulative preferred shares are not recorded as a liability, but they are disclosed in the notes to the financial statements.

Which of the Following Is True