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

Question

Quizplus · Accepted Answer

Stock dividends distributable are classified on the statement of financial position as an item of shareholders' equity, reflecting the company's commitment to distribute additional shares to shareholders without requiring immediate cash outflow.

Stock Dividends Distributable Should Be Classified on the