This posting addresses common expressions in a limited co.
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Please help with the following problem. Provide at least 300 words in the solution.
Briefly explain each of the following expressions that you have seen in the financial statements of a limited company:
A. Dividend
B. Audit fee
C. Share premium account
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Solution Summary
The solution provides a discussion on each expression commonly used in a limited company, including dividend, audit fee, and share premium account. The explanation is given in 325 words. References are also provided.
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A. Dividend:
A limited company makes dividend payments to shareholders based on the profits of the limited company. Only limited companies that have made a profit for the fiscal year have the ability to pay shareholder dividends. Dividends are usually paid on either an annual or a semi-annual basis, and would be noted in the financial statements. The dividends are part of owner's equity on the limited company's balance sheet. Dividends are generally seen as payments or rewards based on the shareholder's interest in the ...
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