A legal liability for cash dividends occurs on which of the following dates?

Question

Quizplus · Accepted Answer

A legal liability for cash dividends occurs on the date of declaration, when the company officially announces the dividend and sets a record date and payment date. The ex-dividend date is the date on which a stock begins trading without the dividend, and the date of record is the date on which shareholders must be on record to receive the dividend. The date of payment is when the dividend is actually paid out to eligible shareholders.

A Legal Liability for Cash Dividends Occurs on Which of the Following