Dividends paid by a company are shown on the
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 Shown on the