Dividends declared:
A)Reduce retained earnings.
B)Increase retained earnings.
C)Reduce net income.
D)Increase net income.

Name: Dividends declared: A)Reduce retained earnings. B)Increase retained earnings. C)Reduce net income. D)Increase net income.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Dividends declared are payments made to shareholders from the company's profits. These payments reduce the amount of profits that are retained by the company, thus reducing retained earnings.

Dividends Declared