The liability for a dividend is recorded on which of the following dates?
A) the date of record
B) the date of payment
C) the last day of the fiscal year
D) the date of declaration

Question

Quizplus · Accepted Answer

The liability for a dividend is recorded on the date of declaration, which is the date when the board of directors formally approves the payment of the dividend. This date is important because it sets the record date and the payment date for the dividend. The date of record determines which shareholders are eligible to receive the dividend, while the date of payment is when the actual cash or stock is distributed to the shareholders. The last day of the fiscal year is not relevant to the recording of a dividend liability.

The Liability for a Dividend Is Recorded on Which of the Following