When the dividend shows real money
The dividend is the part of the net income which the company distributes to shareholders. When the dividend shows real money, the net income is also real money. Is it true?
Expert
No, net income is not real money: this is a number which appears in the last line of the Profit and Loss Account that could vary as per to the criteria used in accountancy and the provisions seems.
The part of the net income which is not distributed to shareholders goes to reserves (to shareholders’ equity). As dividends shows real money, reserves are real money as well. Is it true?
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