Which of the following statements about dividends is not correct? Multiple Choice A liability account, Dividends Payable, comes into existence when the dividend is declared and is discharged when the dividend is paid. Dividends paid to stockholders are not reported in the income statement as an expense. If a small corporation with only a few stockholders always declares and pays its dividends on the same day, that company would not need a Dividends Payable account. The amount of dividends payable at the end of the period is reported in the statement of retained earnings