Which of the following financial statements shows the dividends distributed to stockholders?
A) Income statement
B) Statement of retained earnings
C) Budgeted balance sheet
D) Balance sheet

Question

Quizplus · Accepted Answer

The Statement of Retained Earnings shows the changes in the retained earnings account, which includes any dividends paid to stockholders. The Income Statement shows revenues and expenses for a specific period, but does not include dividends. The Budgeted Balance Sheet and Balance Sheet show the financial position of a company at a specific point in time, but do not explicitly show dividends.

Which of the Following Financial Statements Shows the Dividends Distributed