Declared dividends:
A)are an expense of doing business.
B)are not a legal obligation that a company must pay.
C)are a way to distribute the company's profits to its shareholders.
D)are not recorded as a liability because they are not an expense of doing business.

Question

Quizplus · Accepted Answer

Declared dividends are a way to distribute a company's profits to its shareholders. They are not an expense of doing business, and they are not recorded as a liability until the dividends are actually paid. While companies may choose to declare dividends, they are not legally obligated to do so.

Declared Dividends