Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:
To whom dividend is given at a fixed rate in a company?
Options:
To bond holders
To preference shareholders
To debenture holders
All of the above
Correct Answer:
To preference shareholders
Explanation:
To preference shareholders dividend is given at a fixed rate in a company. Payment made to bond holders and debenture holders is in nature of interest and not dividend.