Which of the following statements about dividends is $\bold{not}$ true?
A)Dividends represent a sharing of corporate profits with owners.
B)Both stock dividends and cash dividends reduce retained earnings.
C)Cash dividends paid to shareholders reduce net income.
D)Dividends are declared at the discretion of the board of directors.

Question

Quizplus · Accepted Answer

Cash dividends paid to shareholders do not reduce net income, but rather reduce retained earnings. Net income is calculated before dividends are paid out.

Which of the Following Statements About Dividends Is not\bold{not}not True? A)Dividends Represent a Sharing of Corporate Profits with Owners

Which of the Following Statements About Dividends Is $\bold{not}$ True?
A)Dividends Represent a Sharing of Corporate Profits with Owners