Question

Which of the following statements regarding the date of a cash dividend declaration is not accurate?

a. The dividend can be rescinded once it has been declared.
b. The corporation is committed to a legal, binding obligation.
c. The board of directors formally authorizes the cash dividend.
d. A liability account must be increased.

Answer 1

a. The dividend can be rescinded once it has been declared.

Step-by-step explanation:

According to the legislation and the accounting rules, is necessary to register the dividend to be considered in the registration, that's why the date is absolutely crucial for the cash dividend registration.