Is dividend paid an expense or equity?

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Cali Hagenes asked a question: Is dividend paid an expense or equity?
Asked By: Cali Hagenes
Date created: Thu, May 13, 2021 1:01 PM
Date updated: Sun, Oct 16, 2022 4:13 PM

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Top best answers to the question «Is dividend paid an expense or equity»

Dividends are not considered an expense, because they are a distribution of a firm's accumulated earnings. For this reason, dividends never appear on an issuing entity's income statement as an expense. Instead, dividends are treated as a distribution of the equity of a business.

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