On December 31, 1995, the board of directors of Ardent Inc. issued a press release to the newspapers stating that the company panned to pay a dividend of $.12 per share on its common stock. The date of this announcement is known as the date of _______; the company must record a liability ______.
a. record; on the date of declaration
b. record; on the date of record
c. declaration; in the year in which teh dividend will be paid
d. declaration; on the date of declaration
e. dividend; when the books are closed for the fiscal year
Answer: d. declaration; on the date of declaration
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