Dividends are declared out of
A) Contributed Capital.
B) Preferred Shares.
C) Common Shares.
D) Retained Earnings.

Name: Dividends are declared out of A) Contributed Capital. B) Preferred Shares. C) Common Shares. D) Retained Earnings.
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Question

Quizplus · Accepted Answer

Dividends are typically declared out of retained earnings, which represent the net earnings of a company that are not distributed to shareholders but retained by the company for reinvestment in its core business or to pay debt.

Dividends Are Declared Out of