Difference Between Dividend And Equity
Dividend is that portion of Retained Earnings which is unappropriated for the business and it is the reversal of Equity , so it is a Contra Eq uity Account and deducted from the equity on Statement of retained earnings while equity is the rights of owners of the business in the Assets of the business, so it is an internal source of finance for the business. Dividend is a kind of withdrawal from the business as it is paid out of retained earnings of the business during the accounting period while equity is the amount invested in the business to finance different projects of the business.