Dividends paid to stockholders are a business expense. True or False? Question 6 2 pts Dividends...

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Question 6 2 pts Dividends paid to stockholders are a business expense. True O False

Dividends paid to stockholders are a business expense. True or False?

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Answer 1

Answer #1

False

Dividends are not considered an expense. For this reason, dividends never appear on an issuing entity's income statement as an expense. Instead, dividends are considered a distribution of the equity of a business. ... Thus, stock dividends are also not considered an expense.

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Answer 2

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