The amount of a company's profit given to a shareholder is known as

Assessment: WAEC SSCE - Financial Accounting - 1997 (Objective) Subject: Financial Accounting

Question 1 Report

The amount of a company's profit given to a shareholder is known as
Answer Details
The correct answer is "dividend." A dividend is the portion of a company's profit that is distributed to its shareholders as a return on their investment. The amount of dividend to be paid to shareholders is usually approved by the company's board of directors and can be in the form of cash, stock, or other property. In short, a dividend is a reward or benefit that a shareholder receives for owning shares in a company.
Read lesson note on Partnership Accounts (WAEC)
Read lesson note on Partnership Accounts (JAMB)
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