Question

Any capital Profit or any appreciation in value of fixed assets may be distributed as dividend provided ______________________.

• A. The revaluation of all the assets discloses a surplus
• B. The profit has been realized in cash
• C. The articles of company permit such a distribution
• D. All of the above

Answer 1

The correct option is D All of the above

Revaluation of fixed assets may be done if the value of the existing assets are high ups due to market scenario. Appreciated value is part of capital profits and may be distributed as dividend if the revaluation of all assets are showing surplus, the profits are realized in cash and if the articles of the company permits such distribution.