2016年美国CPA模拟试题：Financial 1

　　When a company declares a cash dividend, retained earnings is decreased by the amount of the dividend on the date of：

　　a. Record.

　　b. Payment.

　　c. Declaration.

　　d. Declaration or record, whichever is earlier.

　　答案：C

　　Explanation

　　Choice “c” is correct. When a company declares a cash dividend, retained earnings is decreased by the amount of the dividend on the date of declaration by the board of directors.

　　Choice “a” is incorrect. Record date determines who will receive the dividend.

　　Choice “b” is incorrect. Payment date determines when the checks will be mailed.

　　Choice “d” is incorrect. Declaration date always precedes the record date, which is followed by the payment date.