Which of the following statements regarding the date of a cash dividend declaration is not accurate?

A) The dividend can be rescinded once it has been declared.
B) The corporation is committed to a legal binding obligation.
C) The board of directors formally authorizes the cash dividend.
D) A liability account must be increased.

Cash Dividend Declaration

An announcement by a company's board of directors to distribute profits to shareholders in the form of cash.

Liability Account

An accounting record that captures the amounts a company owes to lenders or suppliers, not yet paid but recognized as obligations.

Legal Binding

A situation or agreement that is enforced by law, holding parties to their commitments or obligations.