The next-to-last line on the income statement shows the firm's earnings,while the last line shows the dividends the company paid.Therefore,the dividends are frequently called "the bottom line."

Question

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The next-to-last line on the income statement shows the firm's net income (or profit), while the last line shows the retained earnings, which is the amount of profit that the company has chosen to keep for reinvestment or future use. Dividends are not always listed on the income statement and are not always the same as the retained earnings, so they are not necessarily referred to as the "bottom line."

The Next-To-Last Line on the Income Statement Shows the Firm's