Dividends paid by a corporation represent a distribution of earnings to shareholders and are reported as an expense in the income statement.

Name: Dividends paid by a corporation represent a distribution of earnings to shareholders and are reported as an expense in the income statement.
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Question

Quizplus · Accepted Answer

Dividends are not reported as an expense in the income statement, but rather as a distribution of earnings in the statement of changes in equity.

Dividends Paid by a Corporation Represent a Distribution of Earnings