The date on which a cash dividend becomes a binding legal obligation is on the:O a. Date of recordb. Declaration datec. Last day of the fiscal year-endd. Payment dateA Moving to the next question prevents changes to this answer.&#$< CO

Cash dividend is the regular return paid to shareholders in the form of cash. It is paid out of the…

Answered: The date on which a cash dividend…

The date on which a cash dividend becomes a binding legal obligation is on the: O a. Date of record b. Declaration date Oc. Last day of the fiscal year-end d. Payment date

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings

Section: Chapter Questions

Problem 4MC

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

The date on which a cash dividend becomes a binding legal obligation is on the:
O a. Date of record
b. Declaration date
c. Last day of the fiscal year-end
d. Payment date
A Moving to the next question prevents changes to this answer.
&
#
$
< CO

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