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

Name: On which of the following dates do dividends become a liability of a corporation?
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Question

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Dividends become a liability of a corporation on the declaration date, which is when the board of directors declares the payment of dividends to shareholders. The other dates listed (date of record, end of fiscal year, payment date) are important in the dividend process, but they do not impact when dividends become a liability.

On Which of the Following Dates Do Dividends Become a Liability