CAF-1 · Chapter 8 · Question 5 of 15
An interim dividend of Rs. 15 million is paid during the financial year. How is this recorded in the financial statements?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) As a deduction from retained earnings in the statement of changes in equity.
Explanation
Dividends paid during the year represent distributions to owners and are deducted directly from retained earnings in the statement of changes in equity.
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