Dividends
A)are a period cost.
B)are a distribution of assets to owners.
C)enter into the calculation of net income.
D)appear on both the balance sheet and income statement.
E)none of the above.

Question

Quizplus · Accepted Answer

Dividends are a distribution of assets to owners, usually paid in cash, and do not affect the calculation of net income. They only appear on the statement of changes in equity, as they represent a decrease in retained earnings, which is an equity account.