Where do dividends appear on the financial statements?
The dividends declared and paid by a corporation will be reported as a use of cash in the financing section of the statement of cash flows. Dividends are also reported on the statement of changes in stockholders’ equity.
Dividends on common stock are not reported on the income statement since they are not expenses. Dividends on preferred stock are not expenses, but will be deducted from net income in order to report the earnings available for common stock on the income statement.
Since the balance sheet reports only the ending account balances at an instant of time, the Cash and Retained Earnings amounts reflect the balances after past dividends and other transactions.
Learn more about Stockholders’ Equity.
Comments
8 Responses to “Where do dividends appear on the financial statements?”
Leave a Reply




Hi
I am very grateatful to you for sharing your accounting skils with others.
Sometimes I face some accounting problems which Icannot solve them. Can you help me
Hi
I am so thank full for the service this site has providing to everybody. Presently I am preparing for an interview & I found your service as the best for my preparation.
Thanks alot once again & all the very best wishes.
Hi
Thanks so much for the information it has really help me understand accounting in the simplest way possible
You really make accounting that simple
Thank you,i got the answer for my query on stock dividends.
Thank you, your site is very helpful
This site is very helpful to learn and refer for any enquires about accounting.. Thank you so much
I am an MBA student and found the content of this site quite helpful, very easy to understand…good job!