On November 1, 2015, Oster Company Declared a Dividend of $3.00

question 47

Multiple Choice

On November 1, 2015, Oster Company declared a dividend of $3.00 per share. Oster Company has 10,000 shares of common stock outstanding and 20,000 preferred shares. The date of record is November 15, and the payment date is November 30, 2014. Which of the following statements is true of the date of record?

• A)No journal entry is made on the date of record.
• B)The liability must be recorded on the date of record.
• C)Cash is disbursed to shareholders on the date of record.
• D)The company transfers cash to a brokerage firm on the date of record.

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Definitions:

Point Estimate

A solitary figure or metric that represents the most probable estimate or optimal prediction for a population parameter, derived from sample data.

Margin of Error

The maximum expected difference between the true population parameter and a sample estimate of that parameter.

Mean

The average of a set of numbers, calculated by adding all the values together and dividing by the number of values.

T Distribution

A probability distribution used in statistical analysis that compares sample data to the standard normal distribution, especially useful when the sample size is small.