Asked by
Kristin Adams
on Nov 13, 2024Verified
Cash dividends become a liability to a corporation on the date of record.
Cash Dividends
Payments made by a company to its shareholders from its profits or reserves.
Date of Record
The date of record is a cut-off date set by a corporation to determine which shareholders are eligible to receive a dividend or distribution.
Liability
An obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer of assets, provision of services, or other yielding of economic benefits in the future.
- Comprehend the significance of dividend dates and the process of declaring and paying dividends to shareholders.
Verified Answer
CF
Learning Objectives
- Comprehend the significance of dividend dates and the process of declaring and paying dividends to shareholders.