Which of the following is considered a distribution of a corporation's net income?
A)Common stock
B)Preferred stock
C)Dividends
D)Stockholder's equity
E)Treasury stock

Question

Quizplus · Accepted Answer

Dividends are a distribution of a corporation's net income.
Key Takeaway: Dividends are distributions of the corporation's net income. They are similar to the withdrawals that the owner of a sole proprietorship would make. Dividends are not considered expenses.

Which of the Following Is Considered a Distribution of a Corporation's