[amp_mcq option1=”synonymous terms” option2=”different from each other” option3=”debited to profit and loss account” option4=”divisible profits” correct=”option2″]<\/p>\n
The correct answer is: B. different from each other.<\/p>\n
Dividends are a distribution of a company’s earnings to its shareholders, while interest is a payment made by a borrower to a lender for the use of borrowed money.<\/p>\n
Dividends are typically paid out in cash, but they can also be paid out in stock or other assets. Interest is typically paid out in cash, but it can also be paid out in other forms, such as bonds or other securities.<\/p>\n
Dividends are usually paid out quarterly, while interest is usually paid out monthly.<\/p>\n
Dividends are taxed as ordinary income, while interest is taxed at a lower rate.<\/p>\n
Dividends are a way for companies to return money to their shareholders, while interest is a way for lenders to earn a return on their investment.<\/p>\n
A. Synonymous terms: This is not correct because dividends and interest are different things. Dividends are a distribution of a company’s earnings to its shareholders, while interest is a payment made by a borrower to a lender for the use of borrowed money.<\/p>\n
C. Debited to profit and loss account: This is not correct because dividends are not debited to the profit and loss account. Dividends are paid out of a company’s retained earnings, which are not part of the profit and loss account.<\/p>\n
D. Divisible profits: This is not correct because dividends are not divisible profits. Divisible profits are the profits that are available to be distributed to shareholders. Dividends are only paid out if there are sufficient divisible profits.<\/p>\n","protected":false},"excerpt":{"rendered":"
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