A cash dividend becomes a legal liability of the corporation on the:

Question

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The date of declaration is when the corporation formally announces that a dividend will be paid to shareholders. At this point, the dividend becomes a legal liability of the corporation. The date of record determines which shareholders are entitled to receive the dividend, the date of distribution is when the dividend is actually paid to shareholders, and the date of payment is when the corporation actually distributes the dividend.

A Cash Dividend Becomes a Legal Liability of the Corporation