Dividends are considered an expense in running the business and reported in the income statement.Dividends are a distribution of resources to owners and not considered a cost in running the business to produce revenues.Dividends are reported in the statement of stockholders' equity.

Question

Quizplus · Accepted Answer

Dividends are not considered an expense in running the business and are not reported in the income statement. Instead, dividends are reported in the statement of stockholders' equity as a decrease in retained earnings.

Dividends Are Considered an Expense in Running the Business and Reported