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. declaration date. O b. date of record. O c. payment date. O d. last day of the fiscal year end.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 24GI

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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. declaration date.
O b. date of record.
O c. payment date.
O d. last day of the fiscal year end.
A Moving to another question will save this response.
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