Question

analyzing financial statements reading quiz
question 5 of 10: dividends appear on which financial statement?
a) statement of retained earnings
b) balance sheet
c) income statement
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Explanation:

Dividends are distributions of a company's earnings to shareholders. The statement of retained earnings shows the changes in retained earnings over a period, including deductions for dividends paid. The balance sheet shows a company's financial position at a specific point (assets, liabilities, equity), and dividends aren't directly presented here. The income statement shows revenues and expenses to calculate net income, not dividends. So dividends appear on the statement of retained earnings.

Answer:

a) statement of retained earnings