On the payment date for a cash dividend,the company:
A)debits Dividends and credits Dividends Payable for the amount of the dividend.
B)debits Dividend Expense and credits Cash for the dividend amount.
C)debits Dividends Payable and credits Cash for the dividend amount.
D)establishes who will receive the dividend payment.

Question

Quizplus · Accepted Answer

The payment date is the date on which cash is disbursed to pay the dividend liability owed to each stockholder.The payment of dividends is recorded with a debit to Dividends Payable and a credit to Cash.

On the Payment Date for a Cash Dividend,the Company