What is the major accounting difference between interest incurred during a period and cash dividends declared during
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What is the major accounting difference between interest incurred during a period and cash dividends declared during the same period?
Interest decreases retained earnings while dividend declared increases retained earnings
The interest reduces net income while dividends declared do not affect net income
Interest does not affect net income while dividends reduce net income
There is no major difference. Both are treated identically for accounting purposes.
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