Multiple choice

Directions: Choose the correct option for the given question.

Stock dividend is known as

  1. Inventory

  2. Fund

  3. Profit

  4. Bonus share

  5. None of these

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Stock dividend is the distribution of additional shares to existing shareholders, commonly called a 'Bonus share'. Inventory refers to goods held for sale, Fund is general capital, Profit is earnings - none specifically mean stock dividend.