Dividends Payable is recorded as a credit on the:
A)declaration date.
B)date of record.
C)date of payment.
D)last day of the fiscal year.

Question

Quizplus · Accepted Answer

On the declaration date,the company's board of directors formally approves the dividend,thereby creating a legal liability for the corporation.The dividend is accounted for by increasing Dividends Payable with a credit and increasing a temporary account called Dividends with a debit.

Dividends Payable Is Recorded as a Credit on The