If a business declared and paid a $500 dividend, it would appear on which of the following?
A) Income statement only.
B) Statement of ﬁnancial position only.
C) Statement of changes in equity and the statement of cash ﬂows.
D) Statement of changes in equity only.

Question

Quizplus · Accepted Answer

Dividends paid are reflected in the statement of changes in equity as they represent a distribution of earnings to shareholders, and in the statement of cash flows under financing activities, showing the cash outflow from the business to the shareholders.

If a Business Declared and Paid a $500 Dividend, It