Provision
Current liability
Reserve
Current asset
✅ The correct answer is B.
Declared dividend should be classified in the balance sheet as a Current liability. Dividends payable are dividends that a company’s board of directors has declared to be payable to its shareholders. Until such time as the company actually pays the shareholders, the cash amount of the dividend is recorded within a dividends payable account as a current liability.
Declared dividend should be classified in the balance sheet as a Current liability. Dividends payable are dividends that a company’s board of directors has declared to be payable to its shareholders. Until such time as the company actually pays the shareholders, the cash amount of the dividend is recorded within a dividends payable account as a current liability.