On the ________, Cash Dividends Become a Liability of a Corporation

question 29

Multiple Choice

On the ________, cash dividends become a liability of a corporation.

• A)declaration date
• B)date of record
• C)end of the fiscal year
• D)payment date

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Definitions:

Market Price

The price of a commodity when sold in a given market, determined by supply and demand.

Entry of Firms

Refers to the process by which new companies enter an industry, increasing competition and potentially leading to lower prices and innovation.

Market Price

The present cost at which a service or asset is available for purchase or sale in a specific market.

Equilibrium Price

The cost at which the demand for a product or service matches the supply, leading to equilibrium in the market.