Dividends paid to stockholders are not reported on a business's income statement.

Name: Dividends paid to stockholders are not reported on a business's income statement.
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Question

Quizplus · Accepted Answer

Dividends paid to stockholders are not considered an expense and do not affect the calculation of net income, therefore they are not reported on an income statement. They will be reported on the statement of stockholders' equity and/or the cash flow statement.

Dividends Paid to Stockholders Are Not Reported on a Business's