How should a stock dividend that has been declared

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1. 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 statement of financial position? Why?

Reference no: EM131106446

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