The declaration of a $5,000 dividend by JLH Company would be reported on which of JLH's financial statements?
A)The income statement only.
B)The statement of stockholders' equity.
C)The balance sheet only.
D)The statement of cash flows.

Question

Quizplus · Accepted Answer

The declaration of a dividend by a company is reported on the statement of stockholders' equity. This statement shows the changes in the company's equity accounts, including common stock, retained earnings, and any other components of equity. The declaration of a dividend would decrease the retained earnings account, which would in turn decrease the company's total equity. Therefore, the declaration of a $5,000 dividend by JLH Company would be reported on the statement of stockholders' equity.

The Declaration of a $5,000 Dividend by JLH Company Would