Which one of the following statements is NOT true relating to dividends? 1. Dividends are a portion of the profit of a company divided amongst the shareholders. 2. Dividends need not be declared solely from the profit of the current year and can include profits from previous trading periods, included in retained income. 3. Dividends can only be declared if approved by the shareholders through their voting rights. 4. Dividends need only be paid out in cash and cannot be in the form of capitalization shares.

Which one of the following statements is NOT true relating to dividends? 1. Dividends are a portion of the profit of a company divided amongst the shareholders. 2. Dividends need not be declared solely from the profit of the current year and can include profits from previous trading periods, included in retained income. 3. Dividends can only be declared if approved by the shareholders through their voting rights. 4. Dividends need only be paid out in cash and cannot be in the form of capitalization shares.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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