Multiple choice

Directions: Choose the correct option for the given question.

'Unclaimed dividend' is positioned in the balance sheet of a company under

  1. Secured Creditors

  2. Provisions

  3. Current Liabilities

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Unclaimed dividend represents dividends declared by the company but not claimed by shareholders within the specified period (usually 7 years). Since this is a liability that the company owes to shareholders but remains unpaid, it is classified under Current Liabilities in the balance sheet. It is not a secured creditor claim (no security is involved), nor is it a provision (provisions are for estimated liabilities, not actual declared dividends).

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