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:

Direct Expenses

Costs that can be directly traced to the production of specific goods or services.

Investment Turnover

A measure that shows how frequently investment assets are bought and sold within a given period.

Cost Center

A department or unit within an organization that does not directly add to profit but still incurs costs, such as HR or IT department.

Service Departments

Units within a company that provide support services to other departments but do not directly generate revenue.