Dividends paid by a company are reported on which of the following financial statement(s)?
A)Income statement
B)Statement of changes in stockholders' equity
C)Statement of cash flows
D)Statement of changes in stockholders' equity and statement of cash flows

Question

Quizplus · Accepted Answer

Although the dividends account is a temporary account,dividends are not included on the income statement.They are,however,reported as a deduction from retained earnings on the statement of changes in stockholders' equity and as a cash outflow for financing activities on the statement of cash flows.

Dividends Paid by a Company Are Reported on Which of the Following