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JAMB Principles of Accounts 2008 Question 44

Question 44

Company Accounts

Ordinary shareholders received dividend before

  1. A.creditors
  2. B.debtors
  3. C.preference shareholders
  4. D.deferred shareholders
Show the answer and explanation

Answer: D (deferred shareholders)

Explanation

Deferred (founders') shares are paid only after ordinary shareholders have received their dividend.