Cash dividends usually are declared on one date and paid on a subsequent date to shareholders of record on some intermediate date.On which of the following dates should an accrual basis shareholder recognize investment revenue?

Question

Quizplus · Accepted Answer

Under accrual accounting, revenue is recognized when it is earned. For dividends, this is typically on the declaration date when the company commits to paying the dividend.

Cash Dividends Usually Are Declared on One Date and Paid