• 1 Marks

BL – May 2022 – L1 – SA – Q13 – Law Relating to Banking

Identify the operational expense that a bank does not need to write off before paying dividends.

The operational expenses that a bank must write off before paying dividends include the following, EXCEPT
A. Preliminary expenses
B. Set off
C. Organisational expenses
D. Share selling commission
E. Brokerage

Answer: B. Set off

Explanation:
Set off refers to the process of balancing debts with credits and is not considered an operational expense that needs to be written off before dividends are paid. Operational expenses like preliminary expenses, organizational expenses, and commissions need to be cleared before dividend distribution. Thus, B. Set off is the correct answer.

Back to all questions

Pick a Form

Professional Tutor Application Form
Academic Tutor Application Form
Student Tutor Application Form