Dividends appear on which financial statement?

Understand the Problem

The question is asking about the specific financial statement where dividends are reported, indicating an interest in financial accounting.

More Information

Dividends declared are also reported under current liabilities if not yet paid, and are shown on the statement of cash flows when paid out.

Tips

A common mistake is to assume dividends appear on the income statement, but they actually impact the equity section of the balance sheet and are detailed in the statement of stockholders' equity.

Sources

• Dividends appear in statement of stockholders' equity - viewpoint.pwc.com