On the Dividend Record Date

question 93

Multiple Choice

On the dividend record date

• A) a dividend becomes a current obligation.
• B) no entry is required.
• C) an entry may be required if it is a stock dividend.
• D) Dividends Payable is debited.

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Definitions:

Organization Expense

Costs associated with forming a corporation or business entity, such as legal fees, filing fees, and promotional expenses.

Common Stock

A type of equity security that represents ownership in a corporation, granting holders voting rights and a share in the company's profits through dividends.

Paid-in Capital

Funds received by a company in exchange for shares of its stock, representing the capital contributed by shareholders beyond the par value of the shares.

Organization Expense

Costs associated with the formation of a corporation or business, such as legal fees, registration fees, and initial promotional activities.