A stock dividend is shown in a separate schedule to the statement of cash flows or in a separate note to the financial statements.
The recording of stock dividends involves transferring funds from retained earnings to paid-in capital. The distribution's size will determine how much needs to be moved.
Treasury stock, commonly referred to as treasury shares or reacquired stock, denotes previously outstanding stock that the issuing business has acquired from stockholders. The overall number of outstanding shares on the open market declines as a result. Treasury stock is still issued but is not taken into account for calculating dividends or earnings per share (EPS).
Formerly outstanding stock that has been repurchased and is now retained by the issuing business is known as treasury stock.
Treasury stock is a counter equity account since it lowers the overall shareholders' equity on a company's balance sheet.
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