Dividends are declared out of

Question

Quizplus · Accepted Answer

Dividends are typically paid out of a company's retained earnings, which are the profits that have been kept by the company instead of being distributed to shareholders in the past. Dividends are not paid out of capital stock or paid-in capital in excess of par, which are both equity accounts that represent money received from the issuance of stock. Dividends also cannot be paid out of treasury stock, which represents shares that have been repurchased by the company and are no longer outstanding.

Dividends Are Declared Out of