The date a board of directors votes to pay a dividend is called the
A)Date of the annual shareholders meeting
B)Date of declaration
C)Date of record
D)Date of payment
E)Liquidating date

Question

Quizplus · Accepted Answer

The date of declaration is when the board of directors officially declares that a dividend will be paid to shareholders. This is the first step in the process of paying a dividend, and it sets the date of record and the date of payment, which are the other two important dates in the process. The date of the annual shareholders meeting is not necessarily related to the payment of a dividend, and the liquidating date is not commonly used in relation to dividends.

The Date a Board of Directors Votes to Pay a Dividend