A liability for dividends exists: Multiple Choice When cumulative preferred stock is sold. On the date...
A liability for dividends exists:
Multiple Choice
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When cumulative preferred stock is sold.
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On the date of declaration.
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On the date of record.
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On the date of payment.
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For dividends in arrears on cumulative preferred stock.
Homework Answers
On the date of declaration
A liability for dividends exists on the date of declaration. When a corporation declared a dividend, the total value of dividends has to deducted from the company's retained earnings and transferred to a temporary liability account called dividends payable.
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A liability for dividends exists: Multiple Choice When cumulative preferred stock is sold. On the date...
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