Declared dividend should be classified in the balance sheet as a
A. Provision
B. Current liability
C. Reserve
D. Current asset
Answer: Option B
Solution(By Examveda Team)
Declared dividend should be classified in the balance sheet as a Current liability. Dividends payable are dividends that a company's board of directors has declared to be payable to its shareholders. Until such time as the company actually pays the shareholders, the cash amount of the dividend is recorded within a dividends payable account as a current liability.This Question Belongs to Commerce >> Accounting
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