If Idaho Company has paid out more in dividends than it has had in net income, over the lifetime of the company, then the balances in the Stockholders' Equity should show:

Question

Quizplus · Accepted Answer

If a company has paid out more in dividends than it has had in net income, then the Retained Earnings account will have a negative balance, meaning it has a debit balance. Therefore, the correct choice is D. The Common Stock account will not be affected by dividend payments as it shows the amount of capital stock issued and does not change with dividend payments.

If Idaho Company Has Paid Out More in Dividends Than