On Which One of the Following Dates Do Dividends Become

question 15

Multiple Choice

On which one of the following dates do dividends become a liability of the issuer for accounting purposes?

• A)First day of the fiscal year in which the dividend is expected to be paid
• B)Twelve months prior to the expected dividend payment date
• C)On the declaration date
• D)On the date of record
• E)On the date of payment

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Definitions:

Double-Declining-Balance

A method of accelerated depreciation that doubles the normal depreciation rate, reducing the book value of assets more quickly in the early years.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, which reflects the loss in value due to usage, wear and tear, or obsolescence.

Residual Value

The forecasted price an asset is likely to command at the end of its usefulness.

Component Depreciation

A method of depreciation where different components of a fixed asset are depreciated separately over their respective useful lives.