Cash dividends are declared out ofA) Dividends Payable.B) Preferred Shares.C) Common Shares.D) Retained Earnings.

Question

Paula Dimaano · Accepted Answer

Final Answer : D, Explanation :  Cash dividends are typically declared out of retained earnings, which represent the portion of a company's profits that have been saved or retained rather than paid out to shareholders or invested in new projects.

Cash dividends are declared out of

A) Dividends Payable.
B) Preferred Shares.
C) Common Shares.
D) Retained Earnings.

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