On November 1, 2015, Oster Company declared a dividend of $3.00 per share. Oster Company has 10,000 shares of common stock outstanding and 20,000 preferred shares. The date of record is November 15, and the payment date is November 30, 2014. Which of the following statements is true of the date of record?

Question

Quizplus · Accepted Answer

The date of record is the date on which the company determines which shareholders are eligible to receive the dividend. A journal entry is not made on this date, and no cash is disbursed to shareholders. It is simply a record-keeping date for the company to determine who should receive the dividend on the payment date.

On November 1, 2015, Oster Company Declared a Dividend of $3.00