Question : Adjustment for Proposed Dividend is:
Option 1: Add the previous year’s proposed dividend under net profit before tax and extraordinary items and deduct it under Financing Activity.
Option 2: Add the current year’s proposed dividend under net profit before tax and extraordinary items and deduct previous year’s proposed dividend under Financing Activity.
Option 3: Add the current year’s proposed dividend under Net Profit before Tax and Extraordinary Items and deduct current year’s proposed dividend under Financing Activity
Option 4: None of the above
Correct Answer: Add the previous year’s proposed dividend under net profit before tax and extraordinary items and deduct it under Financing Activity.
Solution : In order to calculate net profit before tax and extraordinary items in the cash flow statement, the proposed dividend from the prior year is added back. As an outflow in finance activity, [Proposed Dividend of Previous Year - Unpaid (Unclaimed) Dividend] is recorded.
Hence the Correct answer is option 1.
Question : Adjustment for Proposed Dividend in Cash flow statement is :
Option 1: Add the previous year’s proposed dividend under net profit before tax and extraordinary items anddeduct it under Financing Activity.
Question : Which of the following statement is correct, with respect of Adjustment for Proposed Dividend is:
Option 1: Add previous year's proposed dividend under net profit before tax and extra-ordinary items and deduct it under investing activities.
Option 2: Add previous proposed dividend while calculating net profit before tax and extraordinary items and deduct previous year's proposed dividend under Financing Activity.
Option 3: Add current year's proposed dividend under Net Profit before Tax and Extraordinary items and deduct current year's proposed dividend under Financing Activity.
Option 4: None of the above.
Question : Interim dividend is added to determine_____________.
Option 1: Net profit before tax and extraordinary items
Option 2: Net profit after tax and extraordinary items
Option 3: Operating profit before change in working capital
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile