NECO Accounting 2022 Objective — Question 36
Question 36 of 50 from the National Examinations Council (NECO) Accounting 2022 Objective paper, with the correct answer and a full explanation.
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An item that would be considered a first charge against profit in a company's account is
- A. general reserve
- B. capital reserve
- C. ordinary dividend
- D. preference dividendCorrect
Explanation
Preference shareholders' dividends are paid before any other shareholders, making them a first charge against profit.
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