Which of the following statements about stock dividends is $\bold{true}$?
A)Stock dividends are reported on the income statement.
B)Stock dividends are reported on the statement of shareholders' equity.
C)Stock dividends increase total shareholders' equity.
D)Stock dividends decrease total shareholders' equity.

Question

Quizplus · Accepted Answer

Stock dividends are reported on the statement of shareholders' equity, not on the income statement, and they do not directly increase or decrease total shareholders' equity. Instead, they reallocate part of the company's retained earnings to common stock.

Which of the Following Statements About Stock Dividends Is true\bold{true}true ? A)Stock Dividends Are Reported on the Income Statement

Which of the Following Statements About Stock Dividends Is $\bold{true}$ ?
A)Stock Dividends Are Reported on the Income Statement