To prevent the payment of a larger amount of dividends than was authorised, the corporation should use:
A) an outside independent disbursing agency.
B) cheques which cannot be written for an amount in excess of a stated maximum amount.
C) a separate imprest dividend account.
D) all of the above

Question

Quizplus · Accepted Answer

A separate imprest dividend account ensures that only the authorized amount is available for dividend payments, preventing overpayment.

To Prevent the Payment of a Larger Amount of Dividends