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) contributed capital section of shareholders' equity.
C) assets section.
D) It would not be reported in the statement of financial position.

Question

Quizplus · Accepted Answer

A stock dividend distributable is reported in the contributed capital section of shareholders' equity because it represents an amount that will be transferred from retained earnings to common stock when the dividend is distributed.

If the Statement of Financial Position Is Prepared After a Stock