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-   -   Financial leverage ratio & Dividends Payable - ? (https://www.askmehelpdesk.com/showthread.php?t=392213)

  • Aug 31, 2009, 12:39 PM
    enigma101
    Financial leverage ratio & Dividends Payable - ?
    What is a financial leverage ratio? If dividends are distributed to shareholders’, is it true the amount would be entered as a Dividend Payables and must be paid back?

    Thank you!
    =0)
  • Sep 1, 2009, 12:31 AM
    morgaine300

    Leverage ratios:
    Leverage Ratio

    As for dividends...
    At the time cash dividends are declared it's a debit to either Cash Dividends or Retained Earnings, and a credit to Dividends Payable.

    When the dividends are actually paid later (not "paid back" - you didn't borrow them), then it's a debit to the payable and a credit to cash.

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