The date on which a cash dividend becomes a binding legal obligation is on the
A)declaration date.
B)date of record.
C)payment date.
D)last day of the fiscal year.

Name: The date on which a cash dividend becomes a binding legal obligation is on the A)declaration date. B)date of record. C)payment date. D)last day of the fiscal year.
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Question

Quizplus · Accepted Answer

The declaration date is when the board of directors announces and approves the payment of a dividend, making it a binding legal obligation.

The Date on Which a Cash Dividend Becomes a Binding