Final answer:
Dividends paid by Diva, Inc. would be found on the company's statement of retained earnings, which records changes in retained earnings including dividends paid.
Option c. statement of retained earnings is correct.
Step-by-step explanation:
Dividends are a portion of a company's profits paid out to shareholders, which could be found on the company's financial statements. When Diva, Inc. declared and paid $10,000 of dividends, this transaction is recorded in the statement of retained earnings.
This statement reflects the changes in retained earnings over a specified period, including dividends paid out to shareholders. Dividends are not recorded on the balance sheet directly, as this statement shows a company's assets, liabilities, and equity at a specific point in time. They are also not included in the income statement which captures a company's revenue and expenses over a period to determine net income. Lastly, the statement of revenues and expenses, which is similar to the income statement for non-profit organizations, would also not contain this information.
Option c. statement of retained earnings is correct.