Dividends Are Considered an Expense in Running the Business and Reported

question 88

True/False

Dividends are considered an expense in running the business and reported in the income statement.

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Definitions:

Financial System

The system that covers the exchange of different goods, assets, or financial instruments among people, companies, or states.

Debt Finance

A method of raising capital through borrowing, which can involve issuing bonds or taking out loans, to be repaid at a future date.

Equity Finance

The method of raising capital by selling company shares to investors, in exchange for ownership interest.

Government Budget

A financial statement presenting the government's proposed revenues and spending for a financial year.