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    Question

    If a company declares dividends after the balance sheet

    date but before financial statements are approved, AS 4 requires that: 
    A the dividend should be disclosed in the notes to accounts Correct Answer Incorrect Answer
    B the dividend must be recorded as a liability in the financial statements Correct Answer Incorrect Answer
    C the dividend must be added to share capital Correct Answer Incorrect Answer
    D the dividend must be ignored entirely Correct Answer Incorrect Answer

    Solution

    The correct answer is A

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