The date on which a cash dividend becomes a binding legal obligation is on the
A) declaration date.
B) date of record.
C) payment date.
D) last day of the fiscal year-end.

Name: The date on which a cash dividend becomes a binding legal obligation is on the A) declaration date. B) date of record. C) payment date. D) last day of the fiscal year-end.
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Question

Quizplus · Accepted Answer

The declaration date is when the board of directors announces a dividend, making it a binding legal obligation.

The Date on Which a Cash Dividend Becomes a Binding