Dividends appear on:
A)the Statement of Retained Earnings.
B)both the Statement of Retained Earnings and the Income Statement.
C)the Income Statement.
D)the Balance Sheet.

Question

Quizplus · Accepted Answer

Dividends are a distribution of a portion of a company's earnings to shareholders. As such, they are reflected in the Statement of Retained Earnings, which shows changes in retained earnings, including the impact of dividends. Dividends do not appear on the Income Statement or the Balance Sheet, unless they have not yet been paid out and are classified as a liability on the Balance Sheet.

Dividends Appear On