Accounting entries associated with a cash dividend usually are made on which of the following dates?
A) Record date and payment date.
B) Payment date only.
C) Declaration date and payment date.
D) Declaration date and record date.

Question

Quizplus · Accepted Answer

Accounting entries associated with a cash dividend are typically made on the declaration date when the dividend is announced and on the payment date when the cash is actually distributed to shareholders. The record date is important because it determines the shareholders who are eligible to receive the dividend, but no accounting entries are made on this date.

Accounting Entries Associated with a Cash Dividend Usually Are Made