A Corporation Records a Dividend-Related Liability

question 52

Multiple Choice

A corporation records a dividend-related liability

• A)on the payment date.
• B)on the record date.
• C)on the declaration date.
• D)when the stock sells ex-dividend.

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Definitions:

Adjusting Entry

An entry made in the accounts to reflect a correct amount of revenues and expenses for a specific period before preparing the financial statements.

Consulting Fees-Revenue

Income earned by an individual or a company for providing professional advice or services to clients.

Cash

A form of liquid asset that consists of currency, including coins and banknotes, which can be used immediately for transactions.

Supplies Expense

The cost associated with consumable supplies used during an accounting period in the operation of a business.