The auditor is concerned with establishing that dividends are paid to stockholders of the client corporation owning stock as of the

Question

Quizplus · Accepted Answer

The record date is the date on which the corporation determines who the stockholders of record are for the purpose of receiving dividends. This is the date used to establish ownership for dividend payments. The issue date is the date on which the corporation originally sold the stock, the declaration date is the date on which the corporation's board of directors approves a dividend payment, and the payment date is the date on which the dividend is actually paid to the stockholders. While these other dates are relevant to the dividend payment process, they do not determine ownership for the purposes of receiving the dividend.

The Auditor Is Concerned with Establishing That Dividends Are Paid