What is the difference between dividends that are declared and dividends that are paid? There is no difference When they are declared they reduce Net Income and when they are paid they reduce cash When they are declared they increase Net Income and when they are paid they reduce cash When they are declared they reduce Common Stock and when they are paid they increase Dividends Payable When they are declared they reduce Retained Earnings and when they are paid they reduce Dividends Payable

There exist difference between dividend that is declared and paid

Answered: What is the difference between…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter5: Income Statement: Reporting The Results Of Operating Activities

Section: Chapter Questions

Problem 4Q

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What is the difference between dividends that are declared and dividends that are paid?

		There is no difference
		When they are declared they reduce Net Income and when they are paid they reduce cash
		When they are declared they increase Net Income and when they are paid they reduce cash
		When they are declared they reduce Common Stock and when they are paid they increase Dividends Payable
		When they are declared they reduce Retained Earnings and when they are paid they reduce Dividends Payable

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