[Solved] Dividend cannot be paid out of

Dividend cannot be paid out of

a) Capital profit

b) Capital receipts

c) Revenue receipts

d) None of the above

Answer: (b) Dividend cannot be paid out of capital receipts. An interim dividend is a dividend payment made before a company’s annual general meeting and before the release of final financial statements. This declared dividend usually accompanies the company’s interim financial statements and are paid out monthly or quarterly.

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