Dividends paid:
A) Must be equal to or less than the net income earned each year.
B) Equal the cash ﬂow to stockholders in any given year.
C) Reduce the taxable income of a ﬁrm.
D) Are considered a noncash expense.
E) Are equal to net income less the change in retained earnings.

Question

Quizplus · Accepted Answer

Dividends paid are calculated as net income minus the change in retained earnings, reflecting the portion of net income distributed to shareholders.

Dividends Paid