GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Proposed Dividend
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Provision for Taxation
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Contribution to Provident Fund
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Miscellaneous expenditure written off
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Detailed explanation-1: -Below the Line refers to items in a profit and loss statement that are income or expense items that are not normally incurred in a company’s day-to-day operations. It includes exceptional and extraordinary items that relate to another accounting period or do not apply to the current accounting period.
Detailed explanation-2: -The dividends declared by a company’s board of directors that have yet to be paid out to shareholders get recorded as current liabilities.
Detailed explanation-3: -Key Takeaways. Above-the-line costs include all costs above the gross profit, while below-the-line costs include costs below gross profit. Above-the-line costs are often referred to as the cost of goods sold (COGS), while below-the-line is operating and interest expenses and taxes.