The date on which the board of directors of a corporation decides that earnings are sufficient to pay a dividend is the ________.
A)declaration date
B)date of record
C)date of payment
D)dividend date

Question

Quizplus · Accepted Answer

The declaration date is the date on which the board of directors decides that earnings are sufficient to pay a dividend. The date of record is the date on which a shareholder must be on record to receive a dividend, and the date of payment is the actual date on which the dividend is paid out. The dividend date is not a commonly used term in finance.

The Date on Which the Board of Directors of a Corporation