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Commerce · Q129

Business and Commerce

Graduate and Post Graduate · Commerce · question 129

Q129

Dividends are payable to the _________.

A.
Share holders
Answer
B.
Debenture holders
C.
Registrar of the company
D.
Board of directors

Answer: Option A

Solution

Answer: Option A
Solution:
Dividends are payable to the Share holders. Dividends payable are dividends that a company's board of directors has declared to be payable to its shareholders. Until such time as the company actually pays the shareholders, the cash amount of the dividend is recorded within a dividends payable account as a current liability.