The board of directors of Bosco Company declared a cash dividend on November 15, 2017, to be paid on December 15, 2017, to stockholders owning the stock on November 30, 2017. Given these facts, the date of November 30, 2017, is referred to as the
A)declaration date.
B)record date.
C)payment date.
D)ex-dividend date.

Question

Quizplus · Accepted Answer

The date of November 30, 2017, is referred to as the record date, as it is the date on which the company determines which shareholders are entitled to receive the upcoming dividend. The declaration date is when the board of directors announces the dividend, the payment date is when the actual dividend is paid out to shareholders, and the ex-dividend date is the date on or after which a stock trades without the dividend.

The Board of Directors of Bosco Company Declared a Cash