Dividend is paid out of:
AProfit After Tax (PAT)
BProfit Before Tax
CSales revenue
DWorking capital
Answer & Solution
Correct answer: A. Profit After Tax (PAT)
1. Dividend is distributed from Profit After Tax (PAT).
2. PAT is divided between dividends and retained earnings.
3. Statutory restrictions apply (Companies Act).
_Source: ICAI BoS CA Inter Paper 6A, Ch 8 "Dividend Decisions", §2_