The Amount of a Cash Dividend Liability Is Recorded on the Date

question 180

True/False

The amount of a cash dividend liability is recorded on the date of record because it is on that date that the persons or entities who will receive the dividend are identified.

---

Definitions:

RPM

Revolutions per minute, a unit of rotational speed that indicates the number of turns made by an object in one minute.

Universal Motor

An electric motor that can operate on either AC or DC power and is commonly used in portable tools and appliances.

AC

Alternating Current, a type of electrical current where the flow of electric charge periodically reverses direction, commonly used in power supplies.

DC

Direct Current, an electrical current that flows in one direction only, typical in batteries and DC power supplies.