Asked by Devyn Murray on May 09, 2024
Verified
A corporation records a dividend-related liability
A) on the record date.
B) on the payment date.
C) when dividends are in arrears.
D) on the declaration date.
Dividend-Related Liability
A financial obligation arising when a company declares dividends payable to shareholders, to be settled on the dividend payment date.
- Attain knowledge on the essence and effects of dividend pronouncements and disbursements.
Verified Answer
TM
Tina Marie BrydenMay 12, 2024
Final Answer :
D
Explanation :
A corporation records a dividend-related liability on the declaration date, which is when the board of directors officially approves and declares the dividend. This is the point at which the obligation to pay the dividend becomes formal and must be recognized in the financial statements.
Learning Objectives
- Attain knowledge on the essence and effects of dividend pronouncements and disbursements.
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