Answered: The date on which a cash dividend…

The date on which a cash dividend becomes a binding legal obligation is the Group of answer choices declaration date date of record payment date last day of the fiscal year

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 5TF

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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.

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The date on which a cash dividend becomes a binding legal obligation is the

Group of answer choices

declaration date

date of record

payment date

last day of the fiscal year

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