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!
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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!
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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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