alleryStart learning →A dividend declared after year-end is shown as a year-end liability only if what holds?
AThe auditor asks for it
BShareholders demand it
CA statute requires it
DProfits are very high
Answer & Solution
Correct answer: C. A statute requires it
No obligation exists at the balance sheet date for such a dividend unless a law makes it so.
Keep practising AS 4 Contingencies and Events Occurring After the Balance Sheet Date
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