Which of the following describes how a stock dividend declared but not yet

[Carol]

distributed would be recorded? a- not recorded in any account
b- recorded in a stockholders' equity account as normal credit balance
c- not recorded in a stockholders' equity account but recordedin another account

[Peaches]

c. Its credited as a liability.

a. is wrong because the dividend becomes a liability.
b. is probably wrong depending on how you read the answer. If it read the the stockholder's equity is debited, it would be correct. If "normal credit balance" means the the stocksholders equity section changes, then b would be correct.