Cash dividends are declared out of

Question

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Cash dividends are typically paid out of a company's retained earnings, which represent the accumulated profits that have not been distributed as dividends or used for other purposes. Paid-in capital in excess of par value represents the amount received by the company when it issued its shares in excess of the par value of those shares, so it is not typically used to pay dividends. Treasury stock represents shares that have been repurchased by the company, so it also would not be a source of funds for paying dividends. While common stock represents ownership in the company, it does not provide a source of funds for paying dividends.

Cash Dividends Are Declared Out of