In which financial report would you find dividends distributed to shareholders?

The income statement is the correct report to find dividends distributed to shareholders. This financial statement presents a company's revenues, expenses, and profits over a specific period. Although dividends themselves are not listed as an expense that affects the net income directly, they are derived from the net income reported on the income statement. The net income is then used by the company to determine the amount available for dividends.

In summary, the income statement is central to understanding how dividends are generated since they are a distribution of profits, but the actual declaration and payment of dividends occur after the income statement period has closed. The other reports, such as the balance sheet, primarily depict the company's financial position at a point in time, while the cash flow statement shows the movement of cash in and out of the company during a period, including cash paid for dividends. The annual report encompasses all financial statements, but it is not specific to dividends.