{"id":46187,"date":"2024-04-15T22:08:45","date_gmt":"2024-04-15T22:08:45","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=46187"},"modified":"2024-04-15T22:08:45","modified_gmt":"2024-04-15T22:08:45","slug":"under-which-head-of-the-liability-side-of-a-companys-balance-sheet-unclaimed-dividend-will-be-shown","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/under-which-head-of-the-liability-side-of-a-companys-balance-sheet-unclaimed-dividend-will-be-shown\/","title":{"rendered":"Under which head of the liability side of a company’s balance sheet, ‘unclaimed dividend’ will be shown?"},"content":{"rendered":"

[amp_mcq option1=”Reserve and surplus” option2=”Contingent liabilities” option3=”Current liabilities” option4=”Provisions” correct=”option4″]<\/p>\n

The correct answer is D. Provisions<\/strong>.<\/p>\n

Unclaimed dividends are amounts of dividends that have been declared by a company but have not been claimed by the shareholders. These amounts are usually shown as a separate line item on the company’s balance sheet under the heading of “Provisions”.<\/p>\n

Provisions are liabilities that are not certain to arise, but are probable and have a measurable amount. They are usually created to cover potential losses or expenses that may occur in the future. In the case of unclaimed dividends, the company is likely to have to pay these amounts to the shareholders at some point in the future, so they are considered to be a liability.<\/p>\n

The other options are incorrect because they do not represent liabilities.<\/p>\n