Asked by Danielle Woods on May 03, 2024
Verified
The stock dividends distributable account is listed in the Current liabilities section of the balance sheet.
Stock Dividends Distributable
Shares to be issued to shareholders as part of a stock dividend, representing a portion of earnings not paid out as cash dividends.
Current Liabilities
Obligations or debts that a company must pay within a year from the date of the balance sheet.
- Examine the disclosure obligations for stock dividends, treasury shares, and retained profits in financial reports.
Verified Answer
CS
Ciara ScottMay 08, 2024
Final Answer :
False
Explanation :
The stock dividends distributable account is listed in the equity section of the balance sheet, as it represents a commitment to issue shares to shareholders, not a liability to pay cash.
Learning Objectives
- Examine the disclosure obligations for stock dividends, treasury shares, and retained profits in financial reports.