______________ is the dividend declared at the Annual General Meeting.
- AInterim dividend
- ✓Final dividend
- CUnpaid dividend
Answer: B.
View full solution →Question types
Dividend and Interest question types
114 questions across 14 question groups — pick any mix to generate a Secretarial Practice paper with step-by-step answer keys.
114
Questions
14
Question groups
5
Question types
01
Select the correct answer from the options given below and rewrite the statement.
21 Q→02Give one word or phrase for the following sentence:
12 Q→03State whether the following statement is true or false.
15 Q→04Match the correct pairs
4 Q→05Explain the following term/concept in detail:
11 Q→06Study the following case/situations and express your opinion.
9 Q→07Distinguish between the following:
2 Q→08Answer in brife
4 Q→09Justify the following statement.
12 Q→10Answer the following questions
6 Q→11Find the odd one.
4 Q→12Complete the sentences.
8 Q→13Answer in one sentence.
4 Q→14Attempt the following.
2 Q→Sample Questions
Dividend and Interest questions
One sample from each question group in this chapter. Select any group above to see the full set with answer keys.
The ______________ recommends the final dividend.
- AShareholders
- ✓Board of Directors
- CPromoters
Answer: B.
View full solution →The dividend declared between two Annual General Meetings is known as ______________ dividend.
- ✓Interim
- BFinal
- CAnnual
Answer: A.
View full solution →Unpaid or Unclaimed dividend shall be transferred to ‘Investors Education and Protection Fund’ on expiry of ______________ years.
- AThree
- ✓Seven
- CFive
Answer: B.
View full solution →Dividend is an income on investment in ______________
- ADebentures
- BLoan
- ✓Shares
Answer: C.
View full solution →People who recommend the rate of dividend.
A dividend remaining unpaid to shareholders even after the expiry of 30 days of its declaration.
The return is paid to the creditors by the company.
Dividend decided and declared by the Board.
Dividend declared between two AGMs.
‘Unpaid Dividend Account’ is opened in a private Bank by the company.
Auditors’ opinions should be taken before declaring an Interim dividend.
The higher the risk, the lower is the interest.
The interim dividend is declared before the preparation of the final accounts of the company.
The final dividend is paid on the actual profits that arrived after the closure of books of accounts.
| Group ‘A’ | Group ‘B’ |
| (1) Interim dividend | (a) Cannot be paid in kind |
| (2) Dividend account | (b) Cannot be paid out of reserves |
| (3) Declaration of dividend | (c) Owners of the company |
| (4) Interest | (d) Board of Directors |
| (5) Listed Company | (e) Schedule Bank |
| (f) Dividend as a per-share basis only | |
| (g) IEPF | |
| (h) Debenture holders | |
| (i) Rate of dividend is high | |
| (j) Shareholder’ approval |
| Group ‘A’ | Group ‘B’ |
| (1) Dividend coupon | (a) Return of investment of shareholders |
| (2) Dividend warrant | (b) Declared at Annual General Meeting |
| (3) Dividend | (c) Share certificate holder |
| (4) Final Dividend | (d) Share warrant holder |
| (5) Interim Dividend | (e) Return on debentures |
| (f) Declared between two Annual General Meetings | |
| (g) Bonus Shares | |
| (h) Declared at an extraordinary general meeting | |
| (i) Special resolution | |
| (j) Debenture certificate holder |
Dividend Warrant.
Rate of Dividend
IEPF
Dividend Mandate
Unpaid Dividend Account
Mr. B is the shareholder who wants to get dividend credited directly in his bank account. Question (a).
What form is Mr. B required to fill to get the dividend credited directly into this account? Question (b). If Mr. B has sold his partial shares, will he receive the dividend? Question (c) What is the benefit of Dividend Mandate?
What form is Mr. B required to fill to get the dividend credited directly into this account? Question (b). If Mr. B has sold his partial shares, will he receive the dividend? Question (c) What is the benefit of Dividend Mandate?
Mr. Dutch has given a loan to the VMCL Co. Question (a). What is Mr. Dutch to VMCL Co.? Question (b).What will Mr. Dutch receive in return? Question (c) Will Mr. Dutch receive interest even if the company is in loss?
VMCL Co. Ltd. decides to pay the final dividend. Question (a). Is the rate of final dividend lower than interim dividend which is already paid by them? Question (b). Who has the authority to declare the final dividend? Question (c) Can it be paid out of capital profit?
ABC Co. Ltd. decides to pay Interim Dividend.
Q1- Can it be paid out of free reserves?
Q2- Is the Board right in declaring the same at the Board Meeting?
Q3- Can the company distribute the same within 30 days of its declaration?
DIAMOND Co. Ltd. is considering declaring an Interim Dividend.
Q1- In how many days of the declaration it should transfer the funds to Dividend Account?
Q2- In how many days it must pay it to shareholders?
Q3- In how many days of the declaration it must transfer the funds to the Unpaid Dividend A/c?
Dividend and Interest
Final Dividend and Interim Dividend
Explain different modes of payment of dividend.
Explain the features of interest.
Discuss any four features of dividend.
State any four points to be kept in mind by a listed company with respect to dividends.
Payment of interest does not require the passing of a resolution at any meeting. OR Resolution need not be passed for payment of interest.
The rate of interim dividend is lesser than final dividend.
Dividend can be declared even if a company suffers loss in that particular period.
Dividend cannot be paid on calls i.e. in advance.
Approval of members is not needed for Interim Dividends.
Explain the rules pertaining to the Unpaid/Unclaimed Account.
Explain legal provisions for the payment of dividends.
Explain Interim Dividend.
Discuss legal provisions for declaration of dividend.
What is Interest? Explain its features.
ECS, NEFT, Cash
Unpaid/Unclaimed Account, IEPF, Deposits
Interest, Dividend warrant, Dividend Mandate
Equity Shares, Preference Shares, Deposit Holders
Arrange in proper order :
(a) Payment of dividend to shareholder’s banker
(b) Dividend Mandate
(c) Company authorizes
Arrange in proper order :
(a) Declaration of Dividend
(b) Sources of Dividend
(c) Payment of Dividend
Any amount in ‘Unpaid Dividend A/c’ for 7 years should be transferred to ______________
______________ is paid to the creditor of the company.
Rate of interest is expressed as annual percentage of ______________
What is the full form of IEPF?
Name the electronic mode of payment of dividends.
Which are the two types of dividend?
Who declares the final dividend?
Explain the legal provisions of the listed company regarding the declaration of dividends.
Explain the legal provisions for the sources of dividends.
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