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What is the purpose of calculating 'divisible profits' in a company's financial context?
  • a)
    To determine the amount of losses that need to be set off against current year's profits.
  • b)
    To ascertain the amount of profits that can be distributed as dividends to shareholders.
  • c)
    To calculate the total capital investments made by shareholders.
  • d)
    To assess the company's total revenue before tax deductions.
Correct answer is option 'B'. Can you explain this answer?
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What is the purpose of calculating 'divisible profits' in a company's ...
'Divisible profits' refer to the portion of profits available for distribution as dividends to shareholders. It is crucial to calculate this amount to ensure that the company does not distribute more than what is legally and financially permissible. Dividends should only be paid out of actual profits, and calculating 'divisible profits' helps in determining the accurate amount available for distribution.
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What is the purpose of calculating 'divisible profits' in a company's financial context?a)To determine the amount of losses that need to be set off against current year's profits.b)To ascertain the amount of profits that can be distributed as dividends to shareholders.c)To calculate the total capital investments made by shareholders.d)To assess the company's total revenue before tax deductions.Correct answer is option 'B'. Can you explain this answer?
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What is the purpose of calculating 'divisible profits' in a company's financial context?a)To determine the amount of losses that need to be set off against current year's profits.b)To ascertain the amount of profits that can be distributed as dividends to shareholders.c)To calculate the total capital investments made by shareholders.d)To assess the company's total revenue before tax deductions.Correct answer is option 'B'. 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 What is the purpose of calculating 'divisible profits' in a company's financial context?a)To determine the amount of losses that need to be set off against current year's profits.b)To ascertain the amount of profits that can be distributed as dividends to shareholders.c)To calculate the total capital investments made by shareholders.d)To assess the company's total revenue before tax deductions.Correct answer is option 'B'. 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 What is the purpose of calculating 'divisible profits' in a company's financial context?a)To determine the amount of losses that need to be set off against current year's profits.b)To ascertain the amount of profits that can be distributed as dividends to shareholders.c)To calculate the total capital investments made by shareholders.d)To assess the company's total revenue before tax deductions.Correct answer is option 'B'. Can you explain this answer?.
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