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:

Financial Statements

Structured reports that convey the financial activities and condition of a business or individual, including balance sheets, income statements, and statements of cash flows.

Warranty Liability

An obligation companies assume when they provide a promise to repair, replace, or refund products that fail to perform as expected.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditure to the appropriate period.

Warranty Contract

An agreement where a seller promises to repair or replace a product if it breaks or malfunctions within a certain period of time.