When Does a Company Record Dividends Payable

question 15

Multiple Choice

When does a company record dividends payable?

• A)On date of record.
• B)On ex-dividend date.
• C)On payment date.
• D)On declaration date.

---

Definitions:

Income Taxes

Taxes levied by a government directly on income, both earned (salaries, wages) and unearned (dividends, interest).

Preferred Dividends

Preferred dividends are regular dividend payments made to preferred shareholders before any dividends can be issued to common shareholders.

Dividends

Payments made by a corporation to its shareholder members. It can be issued in various forms, such as cash payment, stocks, or other forms.

Tax Deductible

Expenses that can be subtracted from gross income to reduce the taxable income, potentially lowering overall tax liability.