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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

Option 4: None of the above


Team Careers360 22nd Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: Net profit before tax and extraordinary items


Solution : Answer = net profit before Tax and extraordinary items

Interim Dividend: It is declared (approved) by the Board and paid within seven days of it being declared.
It is added to determine Net Profit before Tax and Extraordinary Items because it is an item of Financing Activity, and payment thereof is shown as an outflow of cash under Financing Activity.
Hence, the correct option is 1.

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