Stock splits and stock dividends may be used by a corporation to change the number of shares of its stock outstanding. (a) What is meant by a stock split effected in the form of a dividend? (b) From an accounting viewpoint, explain how the stock split effected in the form of a dividend differs from an ordinary stock dividend. (c)
Chapter 15, Questions #24
Stock splits and stock dividends may be used by a corporation to change the number of shares of its stock outstanding.
(a) What is meant by a stock split effected in the form of a dividend?
(b) From an accounting viewpoint, explain how the stock split effected in the form of a dividend differs from an ordinary stock dividend.
(c) How should a stock dividend that has been declared but not yet issued be classified in a balance sheet? Why?
This problem has been solved!
Do you need an answer to a question different from the above? Ask your question!
Answer
(a) A stock split effected in the form of a dividend is a stock split in which each existing shareho…View the full answer
Related Book For 
