On November 1, 2014, Oster Company declared a dividend of $3.00 per share. Oster Company has 20,000 shares of common stock outstanding and no preferred stock. The date of record is November 15, and the payment date is November 30, 2014.
-Which of the following statements is TRUE about the date of record?

Question

On November 1, 2014, Oster Company declared a dividend of $3.00 per share. Oster Company has 20,000 shares of common stock outstanding and no preferred stock. The date of record is November 15, and the payment date is November 30, 2014. 
-Which of the following statements is TRUE about the date of record?

Quizplus · Accepted Answer

The date of record is the date on which the company determines which shareholders are eligible to receive the dividend. No journal entry is made on this date as no actual transaction takes place. It is simply a record-keeping date. The liability for the dividend is recorded on the declaration date, and the actual payment of cash is made on the payment date.

On November 1, 2014, Oster Company Declared a Dividend of $3.00