When Dividends Are Declared in One Fiscal Year and Paid

question 76

Multiple Choice

When dividends are declared in one fiscal year and paid in the next fiscal year, the liability for the dividend should be recorded as of the:

• A) Date the dividend is declared.
• B) Last day of the fiscal year.
• C) Date of record.
• D) Date of payment.

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Definitions:

Ka

An equilibrium constant for the dissociation of a weak acid into its proton and conjugate base in solution; a measure of acid strength.

pKa

A measure of the acidity of a hydrogen atom in a molecule, indicating the tendency of the molecule to donate a proton.

Conjugate Acid

The species that is formed when a base gains a proton.

Ammonia

A compound of nitrogen and hydrogen with the formula NH3, noted for its pungent smell and use in fertilizers.