When does a corporation record an increase in Dividends Payable?

A. On the date of issuance
B. On the declaration date
C. On the date of payment
D. On the date of record

Respuesta :

Answer:

B. On the declaration date

Explanation:

Dividend payable are usually advised by management but must be ratified by the shareholders (usually in the annual general meeting) for such to be come recognizable in the books. The date of ratification is the declaration date

As such a corporation record an increase in Dividends Payable on the declaration date.

The right option is B. On the declaration date