Stock dividends distributable should be classified on the
A) income statement as an expense.
B) balance sheet as an asset.
C) balance sheet as a liability.
D) balance sheet as an item of stockholders' equity.

Question

Quizplus · Accepted Answer

Stock dividends distributable are classified on the balance sheet as an item of stockholders' equity, reflecting the company's obligation to issue additional shares to shareholders.

Stock Dividends Distributable Should Be Classified on the