On the Dividend Record Date

question 3

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:

Federal Income Tax

Tax levied by the national government on an individual's or corporation's annual income.

Gross Earnings

The total amount of money earned by an individual or company before any deductions or taxes are taken out.

Withholding Allowance

A deduction that employees can claim to reduce the amount of their income that is subject to federal income tax withholding.

Gross Earnings

The total amount of income earned by an individual or a business before any deductions like taxes, benefits, and other adjustments.