Which of the following is shown in the profit and loss appropriation account of a company?

A. interest charges
B. depreciation
C. directors emoluments
D. dividends

Correct Answer:

Option D – dividends

Explanation

In general accounting, appropriation accounts are mainly prepared by partnerships and limited liability companies (LLCs). They are an extension of the profit and loss statement, showing how the profits of a firm are allocated to shareholders or to increase reserves indicated in the balance sheet. it usually contains dividends, retained earnings, goodwill, etc