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Dividends

Asked Aug 14, 2006, 02:15 PM — 1 Answer
I'm just beginning to learn accounting, but was wondering can dividends EVER in the accounting process be considered expenses.

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CaptainForest Posts: 3,684, Reputation: 2085
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Aug 14, 2006, 07:56 PM
Help Please,

No, dividends can NOT be considered an expense in the accounting process.

Why not?

Because dividends are a distribution of the companies equity.

Remember,
Assets – Liabilities = Equity.
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