Net income that the company distributes to shareholders, Financial Management

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The dividend is the part of the net income that the company distributes to shareholders. As the dividend represents real money, the net income is also real money. Is that true?

No. Net income is not real money: it is a number that appear in the last line of the Profit and Loss Account which could differ according to the criteria used in accountancy, the provisions considered, etc.

 


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