Asked by Madeleine Grace on May 23, 2024
Verified
Dividends always decrease equity.
Equity
The value of an owner’s interest in a property or a business, after deducting liabilities and debts.
Dividends
Dividends are a portion of a company's earnings distributed to shareholders, usually in the form of cash payments or additional shares, reflecting the company's profitability and investment return.
- Understand how dividends are classified and treated within financial statements.
Verified Answer
DT
Debra TrujilloMay 29, 2024
Final Answer :
True
Explanation :
Dividends are distributions of earnings to shareholders, reducing the corporation's retained earnings, which is a component of shareholders' equity.
Learning Objectives
- Understand how dividends are classified and treated within financial statements.
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