Net income and dividends are part of:
A)liabilities.
B)Stockholders' Equity.
C)assets.
D)net income.

Question

Quizplus · Accepted Answer

Net income and dividends are both components of stockholders' equity, which represents the residual claim on assets after liabilities have been paid. Net income adds to stockholders' equity and dividends reduce it, but both affect the overall equity position of the company. Liabilities and assets are separate categories on the balance sheet and do not include net income or dividends.

Net Income and Dividends Are Part Of