Question

______ dividend amounts to capitalization of earnings and distribution of profits among the existing shareholders without affecting the cash position of the firm.

(A) Scrip dividend

(C) Stock dividend

(B) Bond dividend

(D) Property dividend

Answer 1

Correct answer is (A) Scrip dividend

Scrip dividend dividend amounts to capitalization of earnings and distribution of profits among the existing shareholders without affecting the cash position of the firm.