Accounting entries associated with a cash dividend are usually made on which of the following dates?

Question

Quizplus · Accepted Answer

Declaration date and payment date are the two key dates when accounting entries for a cash dividend are made. On the declaration date, the company records a liability for the dividend payable. On the payment date, the company records the actual payment of the dividend, reducing its cash and dividend payable balances.

Accounting Entries Associated with a Cash Dividend Are Usually Made