Free Guide to
Bookkeeping Concepts

Accounting Bookkeeping Concepts PDF Cover

Receive our free 18-page Guide to Bookkeeping Concepts (PDF) when you subscribe to our free newsletter.

You are already subscribed. This offer is not available to existing subscribers.
Step 2: Please check your email and click the confirmation link.

278,784
Subscribers

Why isn't a corporation's dividend shown on its income statement?

A dividend paid by a corporation is a distribution of previously earned net income (profits). A dividend is not an expense or a loss. Therefore, dividends declared and/or paid are not part of the computation of net income that is presented on the income statement.

Dividends declared by corporations are reported in their statements of changes in Retained Earnings and Stockholders' Equity.