On which of the following dates do dividends become a liability of a company?

Question

Quizplus · Accepted Answer

Dividends become a liability of the company on the declaration date, which is the date when the company's board of directors announces its intention to pay a dividend to the shareholders. The other dates mentioned (date of record, payment date, end of financial year) are important in relation to dividend payments, but they do not impact when dividends become a liability for the company.

On Which of the Following Dates Do Dividends Become a Liability