944. Identify the correct one:
a) Dividend can be declared out of capital
reserves or free reserves.
b) Dividend can only be declared out of capital
reserves.
c) Dividend can only be declared out of free
reserves.
d) None of the above
Answer : d) None of the above
 
MCQ revised for better understanding:
Identify the correct one:
a) Dividend can  be  declared out of current year profit and previous year profit.
b) Dividend can be declared out of previous year profit transferred to free reserve or balance in P & l .
c)  Dividend can be declared out of realised gains only.
d) All of the above
Answer: d) All of the above