Accountancy, asked by akashdeep2853, 1 year ago

Does a dividend reduce profit?

Answers

Answered by aanchal145
0
A dividend is a distribution to shareholders ofretained earnings that a company has already created through its profit-making activities. Thus, a dividend is not an expense, and so it does not reduce a company's profits. Because a dividendhas no impact on profits, it does not appear on the income statement.
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