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.

Answer rating: 100% (QA)

The difference is as follows 1 There is no major difference Both are tr... View the full answer