WAEC - Accounts Principles Of Accounts (2022 - No. 37)
An item that would be considered a first charge against profit in a company's account is
ordinary dividend
preference dividend
capital reserve
general reserve
Explanation
Preference dividend is a dividend that is allocated to and paid on a company's shares. If a company is unable to pay all dividends, claims to preferred dividends take precedence over claims to dividends that are paid on common basis.
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