A shareholder in a limited company is disgusted because the company has paid such a small...
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A shareholder in a limited company is disgusted because the company has paid such a small dividend. He shows you the balance sheet, saying "Just look at the other balances available for dividend". He indicates the following items. (i) (ii) (iii) Share premium account Fixed asset replacement reserve Contingencies reserve GH€200,000 GH€50,000 GH 85,000 Requirement Advise him concisely on the availability of the above balances for dividend declaration. A shareholder in a limited company is disgusted because the company has paid such a small dividend. He shows you the balance sheet, saying "Just look at the other balances available for dividend". He indicates the following items. (i) (ii) (iii) Share premium account Fixed asset replacement reserve Contingencies reserve GH€200,000 GH€50,000 GH 85,000 Requirement Advise him concisely on the availability of the above balances for dividend declaration.
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The shareholder is correct that the company has available balances that could be used to declare a dividend However it is important to note that the c... View the full answer
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