Which Statement Best Represents the Relationship Between Date of Declaration

question 69

Multiple Choice

Which statement best represents the relationship between date of declaration, date of record and ex-dividend date, and date of payment, for a cash dividend.

• A)The date of payment results in the biggest decrease in the current ratio.
• B)The date of record establishes the amount to be received.
• C)The ex-dividend date establishes the decrease to cash.
• D)The date of declaration establishes the increase to liabilities.

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Definitions:

Diluted EPS

A performance metric that calculates a company's earnings per share (EPS) assuming all convertible securities were converted to common stock.

Treasury Stock

Shares bought back by the issuing company, reducing the amount of outstanding stock on the open market.

Conversion of Debt

The process of converting debt into equity, typically by exchanging bonds or loans for shares of stock in the issuing company.

Book Value Method

A method of valuing assets or liabilities at their original cost minus any depreciation, amortization, or impairment charges.