Multiple Choice
Which one of the following is subtracted from cash flows from financing activities on the statement of cash flows?
24
views
12. Stockholders' Equity
Dividends and Dividend Preferences
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following is NOT a date associated with the declaration and payment of dividends?
A
Date of payment
B
Date of record
C
Ex-dividend date
D
Date of incorporation
Verified step by step guidance1
Understand the key dates associated with dividends: Dividends involve specific dates such as the declaration date, date of record, ex-dividend date, and date of payment. These dates are crucial for tracking the process of dividend distribution.
Clarify the purpose of each date: The declaration date is when the board of directors formally announces the dividend. The date of record is when shareholders eligible to receive the dividend are determined. The ex-dividend date is the cutoff date for buying shares to qualify for the dividend. The date of payment is when the dividend is actually distributed to shareholders.
Identify the unrelated term: The date of incorporation refers to the date a company is legally formed and registered. This date is unrelated to the dividend process and does not play a role in the declaration or payment of dividends.
Compare the options provided: Analyze each option (Date of payment, Date of record, Ex-dividend date, Date of incorporation) and determine which one does not fit within the context of dividend-related dates.
Conclude that the date of incorporation is not associated with the declaration and payment of dividends, as it pertains to the company's formation rather than its dividend process.
2:47mWatch next
Master Dividend Declaration Date with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Dividends and Dividend Preferences practice set
Problem sets built by lead tutorsExpert video explanations