MNOP Inc Declared a $1

question 111

Multiple Choice

MNOP Inc. declared a $1.00 dividend with a record date of Thursday, September 15, and a payment date of Thursday, October 20. Cheri does not want receive this current dividend. What is the earliest date that she should purchase the stock in order to avoid receiving the dividend?

• A) September 12
• B) September 13
• C) September 15
• D) October 18
• E) October 20

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Definitions:

Accrued Expense

An accounting record of an expense that has been incurred but not yet paid, representing a company's obligation to make future payments for goods and services received.

Incurred

Refers to the recognition of expenses or liabilities that have been consumed or acquired in the course of business operations.

Accrued Expense

Expenses that have been incurred but not yet paid for, recognized in the financial statements through adjusting entries.

Employees' Salaries

Regular payments made to employees for their service to an organization, typically agreed upon and fixed in a contract.