Cash Dividends Are Not a Liability of the Corporation Until

question 36

True/False

Cash dividends are not a liability of the corporation until they are declared by the board of directors.

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Definitions:

Focal Date

A specific point in time that serves as a reference or target for events or operations.

Equivalent Payment

A term related to finance that typically involves finding a payment amount that equates to an equal value under different conditions.

Scheduled

Planned or organized for a certain time or date.

Focal Date

In finance, it refers to a specific point in time used as a reference or base date for calculating the value of financial instruments or for determining the timing of cash flows.