Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 21 - No. 20)
In relation to dividend payments, what is the meaning of "cum-dividend"?
The shares are sold after the dividend has been paid.
The shares are sold with the right to receive the upcoming dividend.
The shares are not eligible for future dividends.
The dividend has been declared but not yet paid.
Explanation
Cum-dividend means the buyer of the shares is entitled to the declared dividend.
Comments (0)
