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Dividends
Help Please
Aug 14, 2006, 02:15 PM
I'm just beginning to learn accounting, but was wondering can dividends EVER in the accounting process be considered expenses.
Thanks
CaptainForest
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.