Under the equity method, dividends are treated as a return on investment that reduces the value of the investor’s shares. Meanwhile, the cost method of accounting treats dividends as taxable income.

The two types of dividends affect a company's balance sheet in different ways.Companies are not required to issue dividends to holders of its common stock. However, many pride themselves on paying ...

Each component of the expanded accounting equation – assets, liabilities, owner's capital, revenues, expenses and withdrawals or dividends ... to outside parties. Examples include loans ...

Most companies report their dividends on a cash flow statement, in a separate accounting summary in their ... the total amount of dividends paid. For example, say a company earned $100 million ...

Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, and has a degree in accounting and finance from DePaul University. Towfiqu Photography / Getty Images Dividends are ...