GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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End of the financial year
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End of the month
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End of the week
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All of the above
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Detailed explanation-1: -The final dividend means the dividend a company pays after its annual general meeting, after the end of the relevant financial year and after issuing its annual financial statements. Final dividends are typically announced and paid after a company’s total earnings of the year are known.
Detailed explanation-2: -An interim dividend is a dividend payment made before a company’s annual general meeting (AGM) and the release of final financial statements.
Detailed explanation-3: -For shareholders, dividends are an asset because they increase the shareholders’ net worth by the amount of the dividend. For companies, dividends are a liability because they reduce the company’s assets by the total amount of dividend payments.