Question

On the _________________________date, the dividend to be paid is recorded as a _______________________, and retained earnings are by the same amount. If the company lists a stockholder as an owner on the___________________ , the stockholder receives the dividend for that period.

Answer 1

Answer: The answers are DECLARATION; LIABILITY; REDUCED; HOLDER-OF-RECORD DATE

Explanation: Dividend is a sum of money aid regularly by a company to its owners. A Stockholder listed as an owner on the holder-of- record date is entitled to dividend when declared.

When a dividend is declared, it is stated as a liability as it becomes a debt to the organisation. This dividend payable is taken from the retained earnings of the organisation.