Where do dividends appear on the financial statements?

Answer 1

Hello Ella,

That's a great question.

Dividends would appear in two separate financial statements, the Statement of Cash Flows & the Statement of Owner's Equity (Statement of Changes in Owner's Equity)

Dividends would appear in the financing section of the Statement of Cash flows as it represents an outflow of cash (cash spent) to pay the dividends to the shareholders.

It would also appear in the Statement of Changes In Owner's Equity which is a statement that tracks the changes in a company's capital over a period of time, often a year.

I hope this is helpful!

Best,

Orlando