Question

Dividends are reported on which of the financial statements

1)balance sheet
2) income statement
3) statement of changes in stockholders equity
4) 2 & 3

Answer 1

Dividends are reported on the income statement.

Step-by-step explanation:

Dividends are reported on the income statement. The income statement shows a company's revenues and expenses during a specific period of time, and dividends are categorized as expenses.

Dividends are not reported on the balance sheet or the statement of changes in stockholders' equity. The balance sheet shows a company's assets, liabilities, and shareholders' equity at a specific point in time, and the statement of changes in stockholders' equity shows the changes in equity during a specific period.