NABTEB Accounting 2023 Objective — Question 24

Question 24 of 50 from the National Business and Technical Examinations Board (NABTEB) Accounting 2023 Objective paper, with the correct answer and a full explanation.

Profit distributed to ordinary shareholders of a limited liability company is (a) interest (b) surplus (c) dividend (d) reserve

A. interest
B. surplus
C. dividendCorrect
D. reserve

Explanation

A dividend is the portion of company profit distributed to shareholders in proportion to their shareholding.

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