Question

4. Which of the following is NOT an important date associated with dividends? a. Date of information b. Dividend payment date c. Declaration date d. Date of record

Answer 1

Answer:-The following is not an important date associated with dividends:-date of information.

Explanation:-

Three important dates regarding dividends:-

1. Declaration Date:-The date the board of directors declares a dividend. On this date, the company accounts for “Dividends Payable” (a liability)

2.Date of Record:-Stockholders who hold the shares on this date are eligible for dividend payment. No accounting entries are necessary on this date

3.Payment Date:-The date the dividends are paid to the shareholders of record. Journal entries are made for actual payment of dividends