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“Proposed dividends” is shown in the Balance sheet of a Company under the head:
a)Provisions
b)Reserves and Surplus
c)Current Liabilities
d)Other Liabilities
Correct answer is option 'A'. Can you explain this answer?
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Verified Answer
“Proposed dividends” is shown in the Balance sheet of a Company under ...
► Provision is defined as the amount set aside to meet the future liability. provisions may be made for short term and long term liability. Short term provisions are those against which the liability is going to arise in next 12 months or so.
► Proposed dividend is shown under the heading of provisions in the balance sheet in liability side. Other provisions may be, employee benefits, taxation etc.
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“Proposed dividends” is shown in the Balance sheet of a Company under ...
Explanation:
Proposed dividends are the dividends that a company's board of directors has proposed to pay to its shareholders but have not yet been paid out. These dividends are shown in the balance sheet of the company under the head "Provisions."
Provisions are liabilities of uncertain timing or amount. They are made for expected future expenses or losses that are likely to occur but are not yet certain. Proposed dividends fall under this category because they are not yet paid out and are subject to approval by shareholders.
Other options such as "Reserves and Surplus," "Current Liabilities," and "Other Liabilities" are not applicable to proposed dividends. Reserves and surplus are profits that are retained in the company for future use, while current liabilities are debts that are expected to be paid within a year. Other liabilities refer to any other financial obligations that a company may have.
In summary, proposed dividends are shown in the balance sheet of a company under the head "Provisions" as they are not yet paid out and are subject to approval by shareholders.
Proposed dividends are the dividends that a company's board of directors has proposed to pay to its shareholders but have not yet been paid out. These dividends are shown in the balance sheet of the company under the head "Provisions."
Provisions are liabilities of uncertain timing or amount. They are made for expected future expenses or losses that are likely to occur but are not yet certain. Proposed dividends fall under this category because they are not yet paid out and are subject to approval by shareholders.
Other options such as "Reserves and Surplus," "Current Liabilities," and "Other Liabilities" are not applicable to proposed dividends. Reserves and surplus are profits that are retained in the company for future use, while current liabilities are debts that are expected to be paid within a year. Other liabilities refer to any other financial obligations that a company may have.
In summary, proposed dividends are shown in the balance sheet of a company under the head "Provisions" as they are not yet paid out and are subject to approval by shareholders.
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“Proposed dividends” is shown in the Balance sheet of a Company under ...
Firstly you need to understand what proposed dividend actually is . Proposed dividend is the dividend declared or proposed to be distributed among the shareholders of the company during a financial year which will be paid in the next financial year . !! :)
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“Proposed dividends” is shown in the Balance sheet of a Company under the head:a)Provisionsb)Reserves and Surplusc)Current Liabilitiesd)Other LiabilitiesCorrect answer is option 'A'. Can you explain this answer?
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