GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which is the type of dividend?
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Interest
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Cash Dividend
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Flexible Capital
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Profit cum-reserve
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Explanation:
Detailed explanation-1: -The cash dividend is by far the most common of the dividend types used. On the date of declaration, the board of directors resolves to pay a certain dividend amount in cash to those investors holding the company’s stock on a specific date.
Detailed explanation-2: -A dividend is a distribution of a portion of a company’s earnings, decided by the board of directors. The purpose of dividends is to return wealth back to the shareholders of a company. There are two main types of dividends: cash and stock.
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