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प्रश्न
‘Accumulated dividend arrears’ on preference shares is shown in the company’s balance sheet as ______.
पर्याय
Current Liability
Contingent Liability
Commitments
Short-term Provision
MCQ
रिकाम्या जागा भरा
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उत्तर
‘Accumulated dividend arrears’ on preference shares is shown in the company’s balance sheet as contingent liability.
Explanation:
Since dividends are payable only when declared by the Board of Directors, and until then, the company has no legal obligation to pay them, they are not shown as actual liabilities in the Balance Sheet, but are instead disclosed as: Contingent Liabilities in the Notes to Accounts
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