Which of the Following Is the Date on Which a Company

question 59

Multiple Choice

Which of the following is the date on which a company incurs a legal liability to distribute the dividend to owners of the stock?

• A) date of record
• B) commitment date
• C) date of declaration
• D) date of payment.

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Definitions:

Initial Deposit

The first sum of money placed into an account or investment.

Regular Interest

Interest that is paid at a standard rate on investments or charged on loans over a fixed period.

GIC

A Guaranteed Investment Certificate, a Canadian investment that offers a guaranteed rate of return over a fixed period of time.

Compounded Monthly

A finance term where interest is calculated and added to the principal balance each month, increasing the amount of future interest earned.