Question: For a corporation, when do Dividends become a liability and reduce retained earnings? A . On the date the board of directors declares the dividend.

For a corporation, when do Dividends become a liability and reduce retained earnings?
A. On the date the board of directors declares the dividend.
B. On the date payment is to be made to the stockholders
C. When cumulative preferred stock dividends go into arrears.
D. None of the above, dividends are always paid out on the same day declared so there is no liability involved.
For a corporation, when do Dividends become a

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

16) A corporation declares a dividend of $0.50 per share on 10,000 shares of common stock. Which of the following would be included in the entry to record the declaration? 16)_ A) Cash Dividends...

Q:

1. The limited liability company may elect to be manager-managed rather than member-managed, which means that only authorized members may legally bind the corporation. a. True b. False 2. A...

Q:

Need to be perfect. This is the last change for the quiz. 1. A partnership business is a: firm listed in a stock exchange, in which no owner owns a majority of equity to control the firm. business...

Q:

The following information pertains to questions 9 and 10. On November 15, YR01 the board of directors of AMD declared a cash dividend of $.50 per share on its common stock to holders of record on...

Q:

QUESTION 12 Cash dividends become a liability to the corporation on: O Date of declaration O Date of record O Payment date O Last day of the year QUESTION 13 Stockholders Equity include the following...

Q:

Exercise 1: Issuing Stock A company will often issue (sell) shares of stock to raise capital. The two main classes of stock are Common Stock and Preferred Stock. Review the completed example below...

Q:

hello i need hello with these 20 multiple choice accounting questions TB 11-01 For a business to be considered a corporation.. For a business to be considered a corporation, it must: Multiple Choice...

Q:

70 SOLID FOOTING Chapter 7 - Adjusting Entries Now that all of January's transactions have been entered, it is time to prepare adjusting entries, Step 3 in the Accounting Cycle. By reviewing the...

Q:

The board of directors of Lawson Corporation voted to pay a dividend to stockholders who owned stock on April 1, 2015. Dividends were paid on May 1, 2015, and received by stockholders on May 5, 2015....

Q:

1) If easier dissolved is to partnership, (blank) is to corporation.* a. greater degree of government control and supervision b. limited liability c. greater ability to acquire funds d. continuity of...

Q:

Which of the following is true of voluntary turnover? It can be reduced by giving new hires a realistic jobpreview. It reduces when the economy is good and vice versa. It has been proven that average...

Q:

Assume that when your phone rings, the caller is a telemarketer with probability 1/8, and that the probability of a telemarketer is independent from call to call. Let X denote the number of...

Q:

What is a significant risk of holding too much inventory? Question 106 options: Increased cash flow and reduced expenses Risks of obsolescence, breakage, or deterioration, leading to financial losses...

Q:

A U.S. bank issued a 30-day CD denominated in Canadian dollars (CA$) 5 million and converted the CAS to United States (US) dollars at a spot rate of $0.80/CA$. The bank engaged in a 30-day forward...