Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:
Unpaid Dividend will be presented under which of the following head, in the Balance Sheet of a company?
Options:
Reserves and Surplus
Current Liabilities
Shareholder’s Funds
Contingent Liabilities
Correct Answer:
Current Liabilities
Explanation:
An unpaid dividend is a dividend that is due to be paid to shareholders but has not yet been distr… Unpaid dividends exist because there is a difference between the time when a company announces its dividend and the time when that dividend is paid. It is shown in current liabilities under the subhead other current liabilities.