Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

The table presents an extract from the financial statements of a limited company: ordinary share capital ($1$ shares) $500\,000$, share premium $150\,000$, revaluation reserve $200\,000$, retained earnings $250\,000$. What is the largest dividend per share that may be paid?

  • A$0.50$
  • B$0.80$
  • C$0.90$
  • D$1.20$

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