Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:
How will the proposed dividend be treated for the current year while preparing the cash flow statement?
Options:
Added back to net profit
Deducted from net profit
Not treated
None of these
Correct Answer:
Not treated
Explanation:
It is shown as contingent liability because no effect is given to the proposed dividend of the current year.