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State true or false with reason. Dividend paid is not a source of fund

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Question

State true or false with reason.

Dividend paid is not a source of fund

Options

  • True

  • False

MCQ
True or False
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Solution

This statement is True.

Dividend is always paid on shares issued by a company is an expense. Shares itself is a source of fund. In payment of dividend cash goes out from the company. It is an out flow of cash and not a source of fund.

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Chapter 9: Analysis of Financial Statements - Exercise 9.1 (Objective Questions) [Page 376]

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Balbharati Book-Keeping and Accountancy [English] Standard 12 Maharashtra State Board
Chapter 9 Analysis of Financial Statements
Exercise 9.1 (Objective Questions) | Q C. 4. | Page 376

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