Multiple Choice
Which of the following best describes a stock dividend?
22
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
The date for identifying the stockholders entitled to receive dividends is called the:
A
date of record
B
payment date
C
declaration date
D
ex-dividend date
Verified step by step guidance1
Understand the concept of dividend distribution: Dividends are payments made by a corporation to its shareholders, typically from profits. There are specific dates associated with the dividend process that are important to know.
Learn the key dates in the dividend process: These include the declaration date, date of record, ex-dividend date, and payment date. Each has a distinct role in the process.
Focus on the 'date of record': This is the date on which the company determines the shareholders who are entitled to receive the dividend. Only those who are listed as shareholders on this date will receive the dividend.
Differentiate the other dates: The declaration date is when the company announces the dividend, the ex-dividend date is the cutoff date for buying shares to be eligible for the dividend, and the payment date is when the dividend is actually paid to shareholders.
Apply this understanding to the question: The date for identifying the stockholders entitled to receive dividends is specifically called the 'date of record.'
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