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Why would dividend declared not be included when
calculating net income?
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Answer / nagesh
A dividend is a return on capital to the shareholders. It
would be in some ways more like a draw to a proprietorship
which is not an expense of the business either.
| Is This Answer Correct ? | 4 Yes | 0 No |
Answer / sonali
Dividend is calculated only after arriving at the net
income fiugre. Dividend is certain percentage of Net
income. So we cannot calculate dividend before calculating
Net income.
| Is This Answer Correct ? | 2 Yes | 0 No |
Answer / meena
firstly ,dividend is a return on capital . In other words
it is like an appropriation of profit .
secondly, net income=gross income-expenses. and dividend is
not considered as expense
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / the accountant
dividend is normally declared or made payable from net
income. remember net income will be either retained
(retained income), distributed as dividend or apportioned
between the two based on the companies dividend policy.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / manoj tirkey
Dividend declared is not included in calculating net income
because dividend is not a charge to income, it is
appropriation of income.
| Is This Answer Correct ? | 0 Yes | 0 No |
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