Which Statement About Cash Dividends Is Correct

question 5

Multiple Choice

Which statement about cash dividends is correct?

• A)The date of declaration is the date that determines which shareholders will receive the dividends.
• B)The date of declaration is the date on which the Board of Directors declares a dividend and the company has an obligation to pay the dividend.
• C)The date of record is the date when the funds for the dividend are transferred to shareholders.
• D)The company must record a journal entry on the date of declaration, the date of record and the date of payment.

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Definitions:

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Fundamental beliefs or principles that guide an individual's or society's attitudes towards politics and governance.

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Fundamental beliefs or guiding principles that dictate behavior and action for individuals or organizations.

Measurement Error

The difference between the value that is observed in a measurement and the true value of what is being measured, often due to imperfections in measurement techniques.

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