Question

The date a cash dividend becomes a binding legal obligation to a corporation is theA. payment date.B. record date.C. earnings date.D. declaration date

Answer 1

Answer:

D. declaration date.

Explanation:

The dividend payment becomes legal obligation, when  it has been declared by Directors and approved by  shareholders in annual general meeting of the company.

The date on which the upcoming dividend payment is announced and declared by the board directors of the company is known as declaration date.

Therefore, the answer is D. declaration date.