A Liability for the Payment of Cash Dividends Is Recorded

A liability for the payment of cash dividends is recorded:

A) on the date the board of directors publicly declares its intention to pay the dividends.
B) only when cumulative preferred dividends are passed over (not paid) and are in arrears.
C) at the end of any year during which common stock dividends were not paid.
D) at the end of every year that the corporation makes a profit.