If a corporation declares a 10% stock dividend on its common shares, the account to be debited on the date of declaration is
A) Stock Dividends Distributable.
B) Common Shares.
C) Share Capital.
D) Dividends Declared.

Question

Quizplus · Accepted Answer

On the date of declaration of a stock dividend, the corporation debits the Dividends Declared account to recognize the obligation to issue additional shares.

If a Corporation Declares a 10% Stock Dividend on Its