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Financial Statements of a Company — Accountancy STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceAccountancyFinancial Statements of a Company1 Mark
Question
Divisible profits means ________.
  1. Profit earmarked for some specific purpose
  2. Profits available for distribution as dividend
  3. Profit equal to normal profit of the industry
  4. 5% profit on total capitalization of the company
✓

Answer

  1. Profits available for distribution as dividend
Explanation:

Divisible profit means profit or that part of profit that can be used for declaring dividends. General reserve and dividend equalisation reserve is an example of divisible profits.

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