1201. A bank can declare dividends :

A. Without making capital losses goods
B. After making capital losses goods *
C. None of the above

1202. A company auditor should see that the dividend should be paid :

A. After charging depreciation *
B. Without charging depreciation
C. Out of capital
D. None of the above

1203. Auditor should see that if past revenue losses exist, Current profits :

A. May be used for payment of dividends
B. Postpone payment of dividends
C. May not be used for payment of dividends 
D. None of the above

1204. Profits prior to incorporation of company :

A. Can be paid as dividends
B. Cannot be paid as dividends *
C. Can be used for revenue expenses
D. None of the above

1205. If profits are overstated due to revenue expenses being charged to capital, it will amount to payment of divident :

A. Out of capital *
B. Out of capital profit
C. Out of revenue profits
D. None of the above

1206. Which one of the following assertions is true?

A. Dividend can be paid out of sale proceeds of fixed assets
B. Capital cannot be used to pay dividends.
C. Dividend cannot be paid out of accumulated reserves
D. Dividend cannot be paid without charging depreciation

1207. In his report, the auditor gives his :

A. Judgement
B. Opinion *
C. Guarantee to correctness of accounts
D. True state of affairs

1208. In his report, the company auditor states :

A. Correct state of affairs
B. True state of affairs
C. True and fair states of affairs *
D. Fair state of affairs

1209. The company has earned profits on sale of its machinery and wants to pay divident out of it . As auditor , you should :

A. Allow it
B. Not allow it
C. Allow it with certain conditions *
D. None of the above

1210. There is a large accumulation of unclaimed dividend and the company directors want to pay dividend out of it, As auditor , you should :

A. Allow it
B. Not allow it
C. Permit many its becomes time banned *
D. None of the above