Which of the Following Is the Best Definition of a Date

question 12

Multiple Choice

Which of the following is the best definition of a date of record?

• A) Date on which the board of directors passes a resolution to pay a dividend.
• B) Date on which holders of record are designated to receive a dividend.
• C) Date of the dividend payment.
• D) Payment made out of a firm's earnings to its owners, either in the form of cash or stock.
• E) Payment made by a firm to its owners from sources other than current or accumulated earnings.

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Definitions:

360-Day Year

A financial convention that simplifies the calculation of interest by assuming a year has 360 days.

Retail Gift Stores

Commercial establishments focusing on selling various gift items including souvenirs, handmade crafts, and other unique products to customers.

Ordinary Simple Interest

Interest calculated on the principal amount of a loan or investment, based on a 360-day year.

Ordinary Simple Interest

A method for calculating the interest charge on a loan or investment based on the original principal, rate, and length of time, without compounding.