When a corporation declares a dividend its Net Income on the income statement is not reduced, therefore the statement is false.
Dividend can be defined as the cash amount that is distributed to shareholders of a company as profit.
The net income on the income does not reduced or decrease when a corporation declares a dividend.
Reason been that dividend is not an expense as they do not have effect on a company net income.
Dividend tend to have majorly have effect on shareholders' equity section of a company statement of financial position.
Inconclusion dividend does not reduce the Net Income on the income statement.
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