Please choose the correct ending to complete the given sentence: Finance and Business: [header] How to account for dividends paid [title] Recognize when to record the liability of the company to pay the cash dividends. [step] This occurs on the " date of declaration, " when the board of directors formally authorizes payment of dividends. Under standard accounting procedures, expenses are recorded when they are incurred.

Ending1: If the regular expenses were paid using the yearly bank statement or a similar accounting process, the dollar amount of an expense would automatically be deducted from the total amount. In this example, gross receipts should be made on your behalf. Ending2: [substeps] It is generally recommended to record also the costs for the payroll, monitoring, and maintenance of company operations. [title] Write down the name of the corporation in the annual or quarterly ledger. Ending3: In this case, dividend expenses are recorded because by declaring them the company is held liable to make good on the declaration and deliver the dividend. [substeps] A declaration specifies when the declaration is made, when the date of record is, and when the dividend will be paid. Ending4: The board will also have to report accounts that are past due or overdue. For example, in january 2017, the board of directors has charged $50 , 000 upon deductible contributions and other such expenses.

Answer format: ending1/ending2/ending3/ending4