Which Statement About Cash Dividends Is Correct

Which statement about cash dividends is correct?

A) The date of declaration is the date that determines which shareholders will receive the dividends.
B) The date of declaration is the date on which the Board of Directors declares a dividend and the company has an obligation to pay the dividend.
C) The date of record is the date when the funds for the dividend are transferred to shareholders.
D) The company must record a journal entry on the date of declaration, the date of record and the date of payment.

Correct Answer:

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