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In case a company has incurred losses up to the end of the preceding quarter, what limitation applies to declaring interim dividends?
  • a)
    Interim dividends cannot be declared under any circumstances
  • b)
    Interim dividends cannot exceed the company's accumulated profits
  • c)
    Interim dividends must not be declared at a rate higher than the average dividends of the last three years
  • d)
    Interim dividends can only be declared if the company's reserves exceed 15% of its share capital
Correct answer is option 'C'. Can you explain this answer?
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In case a company has incurred losses up to the end of the preceding q...
If a company has incurred losses during the current financial year up to the end of the quarter immediately preceding the date of declaration of interim dividend, such interim dividend cannot be declared at a rate higher than the average dividends declared by the company during the immediately preceding three financial years.
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In case a company has incurred losses up to the end of the preceding quarter, what limitation applies to declaring interim dividends?a)Interim dividends cannot be declared under any circumstancesb)Interim dividends cannot exceed the company's accumulated profitsc)Interim dividends must not be declared at a rate higher than the average dividends of the last three yearsd)Interim dividends can only be declared if the company's reserves exceed 15% of its share capitalCorrect answer is option 'C'. Can you explain this answer?
Question Description
In case a company has incurred losses up to the end of the preceding quarter, what limitation applies to declaring interim dividends?a)Interim dividends cannot be declared under any circumstancesb)Interim dividends cannot exceed the company's accumulated profitsc)Interim dividends must not be declared at a rate higher than the average dividends of the last three yearsd)Interim dividends can only be declared if the company's reserves exceed 15% of its share capitalCorrect answer is option 'C'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about In case a company has incurred losses up to the end of the preceding quarter, what limitation applies to declaring interim dividends?a)Interim dividends cannot be declared under any circumstancesb)Interim dividends cannot exceed the company's accumulated profitsc)Interim dividends must not be declared at a rate higher than the average dividends of the last three yearsd)Interim dividends can only be declared if the company's reserves exceed 15% of its share capitalCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In case a company has incurred losses up to the end of the preceding quarter, what limitation applies to declaring interim dividends?a)Interim dividends cannot be declared under any circumstancesb)Interim dividends cannot exceed the company's accumulated profitsc)Interim dividends must not be declared at a rate higher than the average dividends of the last three yearsd)Interim dividends can only be declared if the company's reserves exceed 15% of its share capitalCorrect answer is option 'C'. Can you explain this answer?.
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