Accountancy, asked by hemangikhanna3, 2 months ago

proposed dividend is a liability

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Answered by gufranhifza

Answer:

Proposed dividends can be considered as current liability and hence will decrease working capital in the schedule of changes in working capital. However, when dividends are paid, it is not treated as uses of funds. ... Then, payment of dividend will be shown as application of funds.

Explanation:

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