Multiple choice

Banking companies are not permitted to give dividend until all _____________ are written off.

  1. bad debts

  2. expenses

  3. capitalised expenses

  4. amortisation of dividends
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

No banking company shall pay any dividend on its shares until all its capi­talised expenses (including preliminary expenses, organisational expenses, share-selling commission, brokerage, amounts of losses incurred and any other item of expenditure not represented by tangible assets) have been completely written off.

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