The Auditor Is Concerned with Establishing That Dividends Are Paid

question 42

Multiple Choice

The auditor is concerned with establishing that dividends are paid to stockholders of the entity owning stock as of the:

• A)issue date.
• B)declaration date.
• C)record date.
• D)payment date.

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Definitions:

Contract Specifications

Detailed terms and conditions outlined in a contract that specify the obligations, rights, and expectations of the parties involved.

Cover

A buyer’s or lessee’s purchase on the open market of goods to substitute for those promised but never delivered by the seller or lessor. Under the Uniform Commercial Code, if the cost of cover exceeds the cost of the contract goods, the buyer or lessee can recover the difference, plus incidental and consequential damages.

Remedies

Legal means for enforcing a right or redressing a wrong, including compensation, injunctions, and specific performance.

UCC

Uniform Commercial Code, a set of laws that provide legal rules and regulations governing commercial or business dealings and transactions in the United States.