If a business declared and paid a $500 dividend,it would appear on which of the following?
A)Income statement only.
B)Statement of financial position only.
C)Statement of changes in equity and the statement of cash flows.
D)Statement of changes in equity only.

Question

Quizplus · Accepted Answer

The $500 dividend would appear on the statement of changes in equity to reflect the decrease in retained earnings, and it would also appear on the statement of cash flows to show the cash outflow for the dividend payment.

If a Business Declared and Paid a $500 Dividend,it Would