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متابعة

If the board of directors does not declare the regular quarterly dividend on its common stock,?

 the corporation's liabilities will include the omitted dividend.

1. True

2. False

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تم إضافة السؤال من قبل Tranquilino Jr Rivera , General Accountant , Enany Group of Companies
تاريخ النشر: 2015/06/16
VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
من قبل VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Declaration of Dividend  is not mandatory for the Corporates. In other words it is at the discretion of Board of Directors to declare dividend when sufficient profits are being made by the company. Hence it does not constitute for a liability unless it is declared and a resolution is passed in this regard.

The statement quoted is false.

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