Dividend proposed by a company is shown in its Balance Sheet as
Question 1 Report
Dividend proposed by a company is shown in its Balance Sheet as
Answer Details
Dividend proposed by a company is shown in its Balance Sheet as a current liability. This is because the dividend declared but not yet paid represents a debt that the company owes to its shareholders. The dividend becomes a current liability after the board of directors has proposed it, but it has not yet been paid out to the shareholders. Once the dividend is paid, it is then recorded as a reduction in the company's cash balance and the liability is removed from the balance sheet.
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