Which of the following statements is true?

1. Amounts received from issuing stock are revenues.

2. Amounts paid out as dividends are not expenses.

3. Amounts received from issued stock are reported on the income statement.

4. Amounts paid out as dividends are reported on the income statement.

Option 2 is correct. Amount paid out as dividends are not expenses.

Explanation:

Amount paid out as dividend are not expenses. Expenses must arise in the normal course of business activities e. g wages paid to workers, depreciation, cost of fuel, all these are expenses.

Amount paid out as dividend appears on Statement of changes in equity.

1. Amounts received from issuing stock are revenues? - NO

Revenue is income arising in the course of the ordinary activities of the entity. Examples are sales revenue, rental income etc.

3. Amounts received from issued stock are reported on the income statement? - NO. This is also wrong. Amount s received from issued stock are reported under equity. It adds to the capital of a company.

4. Amounts paid out as dividends are reported on the income statement? - NO. This is also incorrect. Amount paid out as dividend are reported under statement of changes in equity and cash flow statement too