Which of the following statements is true regarding dividend income?
A)Dividend income is accrued at year-end.
B)Dividend income is reported on the income statement.
C)Dividend income appears in the Stockholders' Equity section of the balance sheet.
D)Dividend income is recognized by companies that own debt securities.

Question

Quizplus · Accepted Answer

Dividend income is reported on the income statement as it represents earnings received by the company from its investments in other companies' stock. It is considered a form of revenue or income for the company receiving the dividend.

Which of the Following Statements Is True Regarding Dividend Income