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Dividends Paid by a Company Are Shown on the

Question 67

Multiple Choice

Dividends paid by a company are shown on the


A) income statement.
B) statement of changes in stockholders' equity.
C) statement of cash flows.
D) both b and C.Although the dividends account is a temporary account, dividends are not included on the income statement. They are, however, reported as a deduction from retained earnings on the statement of changes in stockholders' equity and as a cash outflow for financing activities on the statement of cash flows.

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