Question

When does a corporation record an increase in Dividends Payable? Multiple choice question. On the declaration date On the date of record On the date of payment On the date of issuance

Answer 1

Option a) is correct.

A corporation record an increase in Dividends Payable on the declaration date.

Difference Between a Dividend Record Date and Payable Date

There are a few crucial dates that investors need to be aware of when a firm decides to pay dividends to its shareholders.

• The Board of Directors declares the dividend, its amount, record date, and payment date on the declaration date.
• In order to be eligible to receive the announced dividend, you must be listed as a shareholder on the company's books by the record date.
• If you own the stock before the ex-dividend date, you will receive the dividend; if you purchase the stock on or after the ex-date, the seller of the stock will receive the dividend.
• The corporation only pays the announced dividend to shareholders who owned the stock prior to the ex-date on the payable, or payment day.

Learn more about Dividend Record Date and Payable Date here:

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