A dividend is a distribution of profit by a company to its shareholders on a(n): proportionate...
A dividend is a distribution of profit by a company to its shareholders on a(n):
|
proportionate basis. |
|
declaration basis. |
|
profit basis. |
|
asset basis. |
Homework Answers
Ans. A dividend is a distribution of profit by a company to its shareholders on declaration basis. Board of directors of company declare dividend to be distributed to shareholers out of current profits or accumulated profits of company. Dividend is never distributed of capital of company.
Option b is correct (declaration basis).
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