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Basic Question 5 of 12

A stock dividend is recorded as:

A. A transfer from retained earnings to equity capital.
B. A reduction in the par value of each share.
C. A transfer from capital surplus to retained earnings.

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You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

describe regular cash dividends, extra dividends, stock dividends, stock splits, reverse stock splits, and share repurchases

describe dividend payment chronology

CFA® 2025 Level I Curriculum, Volume 3, Module 8.