Dividends Flashcards
1
Q
Is a liability recognized for stock dividends?
A
-No
2
Q
What’s the journal entry when a dividend is declared?
A
Dr. Retained Earnings
Cr. Dividends Payable
3
Q
At what amount is dividend recorded on declaration date?
A
-Market value, gain/loss recognized on declaration date
4
Q
What is a scrip dividend?
A
-A dividend that is first distributed in note payable form