On 1 November 2014, Oster Company Declared a Dividend of $3.00

Multiple Choice

On 1 November 2014, Oster Company declared a dividend of $3.00 per share. Oster Company has 20 000 ordinary shares outstanding and no preference shares. The date of record is 15 November, and the payment date is 30 November 2014. Which of the following statements is TRUE about the date of record?

A) The liability must be recorded on the date of record.
B) The company transfers cash to a stockbroking firm on the date of record.
C) No journal entry is made on the date of record.
D) Cash is disbursed to shareholders on the date of record.