Statement 1- Stock dividends payable account shall be recorded only to the extent of the par value. Statement 2- Treasury shares may be declared as stock dividend, and the amount charged to retained earnings is the cost of the treasury shares. O Both statements are true. Both statements are false. Only Statement 1 is true. Only Statement 2 is true.
Statement 1- Stock dividends payable account shall be recorded only to the extent of the par value. Statement 2- Treasury shares may be declared as stock dividend, and the amount charged to retained earnings is the cost of the treasury shares. O Both statements are true. Both statements are false. Only Statement 1 is true. Only Statement 2 is true.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Statement 1- Stock dividends payable account shall be recorded only to the extent of the par value.
Statement 2- Treasury shares may be declared as stock dividend, and the amount charged to retained
earnings is the cost of the treasury shares.
O Both statements are true.
Both statements are false.
Only Statement 1 is true.
Only Statement 2 is true.
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