In examining the financial statements of your corporation, you recalled learning that dividends are not...
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Accounting
In examining the financial statements of your corporation, you recalled learning that dividends are not reported on the income statement whereas interest expense incurred on bonds payable is a line item included in the determination of net income (loss).
Why are dividends not classified as expenses?
Do you agree that both dividends and interest expense affect stockholders equity? Explain.
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