On 1 November 2016,Oster Company declared a dividend of $3.00 per share.Oster Company has 20 000 ordinary shares outstanding and no preference shares.The date of record is 15 November,and the payment date is 30 November 2016.Which of the following statements is TRUE about the date of record?

Question

Quizplus · Accepted Answer

The date of record is the date on which the company determines who the shareholders of record are and who is entitled to receive the dividend payment. No journal entry is made on this date, and the company does not transfer cash or disburse funds to shareholders on this date. It is simply a record-keeping date to establish the ownership of shares eligible for the dividend payment.

On 1 November 2016,Oster Company Declared a Dividend of $3