Dividends that are paid to owners would affect both the

Name: Dividends that are paid to owners would affect both the
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Dividends paid to owners affect the balance sheet by reducing the company's cash (an asset) and retained earnings (part of equity). They also appear on the statement of cash flows under financing activities, showing the outflow of cash to the owners. Dividends do not affect the income statement as they are not considered an expense but a distribution of profits.

Dividends That Are Paid to Owners Would Affect Both the