Q.Distinguish between the following:
Interim dividend and Final dividend.

Interim dividend is declared by the Board in the middle of a financial year, while final dividend is declared by shareholders at the AGM at the end of the year. They differ in timing, authority to declare, and the accounts on which they are based.

A dividend is the part of a company's profit that is distributed among its shareholders. Depending on when it is declared during the year, a dividend can be an interim dividend or a final dividend.

Interim dividend is a dividend declared and paid between two annual general meetings, i.e. in the middle of the financial year. It is declared by the Board of Directors out of the estimated profits of the current year when the company is confident of good performance.

Final dividend is a dividend declared at the end of the financial year after the final accounts are ready. It is recommended by the Board of Directors and then approved and declared by the shareholders at the Annual General Meeting.