The declaration date for a dividend is the date on which the company:
A)debits Dividends Declared and credits Dividends Payable for the amount of the dividend.
B)debits Dividend Expense and credits Cash for the dividend amount.
C)debits Dividends Payable and credits Cash for the dividend amount.
D)establishes who will receive the dividend payment.

Question

Quizplus · Accepted Answer

The declaration date for a dividend is when the company officially decides and declares that a dividend will be paid, leading to the accounting entry of debiting Dividends Declared and crediting Dividends Payable for the amount of the dividend.

The Declaration Date for a Dividend Is the Date on Which