GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Capital profits can be distributed as dividend only if
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They are realised in cash
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The capital losses have been written off
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The surplus remains after the revaluation of all assets
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All of the above
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Explanation:
Detailed explanation-1: -A capital dividend, also called a return of capital, is a payment that a company makes to its investors that is drawn from its paid-in-capital or shareholders’ equity.
Detailed explanation-2: -Capital profits can be used for distribution of dividend if .
Detailed explanation-3: -A company can share a portion of its profits with four different types of dividends. Your monthly brokerage statement might show a CASH dividend, a STOCK dividend, a HYBRID dividend or a PROPERTY dividend.
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