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Dividends paid to ordinary shareholders shall be presented:



A. In the statement of other comprehensive income as an increase in equity.
B. In the statement of profit or loss as a financial expense.
C. In the statement of other comprehensive income as a decrease in equity.
D. In the statement of profit or loss as other operating expense.

This question is part of Financial Accounting Test 1
Asked by YassirDerbas, Last updated: Feb 17, 2020

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1 Answer

John Smith

John Smith

Answered Jun 08, 2017

In the statement of other comprehensive income as a decrease in equity.

Dividends paid represent distribution of profit after tax to shareholders and therefore, they are shown as a movement in equity. Decrease, of course.####
 

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