When noncash assets are issued as a dividend, those assets should be re-valued as of the:
A)Declaration date.
B)Recording date.
C)Announcement date.
D)Issuance date.

Question

Quizplus · Accepted Answer

When noncash assets are issued as a dividend, those assets should be re-valued as of the declaration date. This is because the declaration date is when the company officially declares a dividend and commits to paying it, making it the appropriate time to assess the value of any noncash assets to be distributed.

When Noncash Assets Are Issued as a Dividend, Those Assets