An Entry for Dividends Is NOT Made on the

question 52

Multiple Choice

An entry for dividends is NOT made on the

• A) date of declaration.
• B) date of record.
• C) date of payment (cash dividends).
• D) date of distribution (stock dividends).

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Definitions:

Cost Recovery

The process of regaining the value of an investment or expense, often through depreciation, amortization, or directly recouping expenses.

Gross Profit

The financial metric that represents the difference between revenue and the cost of goods sold (COGS) before deducting overhead, payroll, taxation, and interest payments.

Net Sales

The revenue a company earns from sales after subtracting the money refunded for returns, compensation for damaged or missing items, and any discounts offered.

Net Purchases

The total amount of purchases made by a business minus returns, allowances, and discounts.