A distribution of a corporation's profit to its shareholders is referred to as
A) a shareholder bonus.
B) wages and salaries expense.
C) a share distribution.
D) a dividend.

Question

Quizplus · Accepted Answer

Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, it is able to pay a proportion of the profit as a dividend to shareholders.

A Distribution of a Corporation's Profit to Its Shareholders Is