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A company purchased inventory for $4,000 from a vendor on account, FOB shipping point, with terms of 3/15, n/30. The company paid $100 cash for freight in. The entry to record payment of invoice within 3 days by the purchaser would include ________

(Assume a perpetual inventory system.) A) a debit to Accounts Payable for $3,880 and a credit to Cash for $3,880 B) a debit to Accounts Payable for $4,000, a debit to Merchandise Inventory for $100, and a credit to Cash for $3,880 C) a debit to Accounts Payable for $4,000, a credit to Merchandise Inventory for $120, and a credit to Cash for $3,880 D) a debit to Accounts Payable for $3,880, a debit to Merchandise Inventory for $120, and a credit to Cash for $4,000

Which of the following statements is correct regarding the declaration of a stock dividend by a corporation having only one class of par value stock?

A. A stock dividend has the same legal and practical significance as a stock split. B. A stock dividend increases a stockholder's proportionate share of corporate ownership. C. A stock dividend causes a decrease in the assets of the corporation. D. A stock dividend is a corporation's ratable distribution of additional shares of stock to its stockholders.