The Date of Record for a Dividend Is the Date

question 67

Multiple Choice

The date of record for a dividend is the date on which the company:

• A)debits Dividends Declared and credits Dividends Payable for the amount of the dividend.
• B)debits Dividend Expense and credits Cash for the dividend amount.
• C)debits Dividends Payable and credits Cash for the dividend amount.
• D)establishes who will receive the dividend payment.

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Definitions:

Average Investment

Average investment refers to the mean value of the initial and final investment over a certain period, often used in calculating returns and payback periods.

Average Annual Income

The average amount of money earned per year over a specified period.

Net Cash Flow

The difference between a company's cash inflows and outflows over a specific period of time.

Cash Flowing

The movement of funds in and out of a business, indicating its operating, investing, and financing activities.