The classification and normal balance of the dividend account is?
- a revenue with a credit balance
- an ecpense with a debit balance
- a liability with a credit balance
- stockholders equity with a debit balance
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The classification and normal balance of the dividend account is?
- a revenue with a credit balance
- an ecpense with a debit balance
- a liability with a credit balance
- stockholders equity with a debit balance
The question is ambiguous. It needs to specify if they are referring to dividends declared, paid, or receivable, or payable. In general, cash dividends paid out are a reduction of your stockholder's equity. In essence, a debit balance to stockholder's equity.
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