Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Accounting (https://www.askmehelpdesk.com/forumdisplay.php?f=19)
-   -   Classification and normal balance of the dividend account (https://www.askmehelpdesk.com/showthread.php?t=263510)

  • Sep 24, 2008, 09:27 AM
    Tammijones
    Classification and normal balance of the dividend account
    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
  • Sep 24, 2008, 09:41 AM
    AdamUTsel

    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.

  • All times are GMT -7. The time now is 04:22 AM.