Keyword Analysis & Research: dividends on financial statement

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Frequently Asked Questions

Where do dividends appear on the financial statements?

The dividends declared and paid by a corporation will be reported as a use of cash in the financing section of the statement of cash flows. Dividends are also reported on the statement of changes in stockholders' equity.Dividends on common stock are not reported on the income statement since they are not expenses.

Are dividends a debit or credit?

When a company rewards shareholders -- those who put their cash into operating activities -- by declaring dividends, accountants debit the retained earnings master account and credit the dividends payable account. On the payment date, they credit the cash account and debit the dividends payable account -- to bring it back to zero.


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