When Does a Corporation Record an Increase in Dividends Payable

question 243

Multiple Choice

When does a corporation record an increase in Dividends Payable?

• A)On the date of record.
• B)On the date of payment.
• C)On the declaration date.
• D)On the date of issuance.

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Definitions:

Operating Activities

Activities related to the day-to-day business operations, such as selling products or services, which generate most of a company's cash flow.

Comparative Balance Sheet

A financial statement that presents the assets, liabilities, and equity of an entity at two or more points in time for comparison purposes.

Cash Dividends

A distribution of a portion of a company's earnings, decided by the board of directors, paid to shareholders in cash.

Operating Activities

Activities that are directly related to the day-to-day operations of a business, generating revenue and expenses.