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    Tammijones's Avatar
    Tammijones Posts: 12, Reputation: 1
    New Member
     
    #1

    Sep 24, 2008, 09:27 AM
    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
    AdamUTsel's Avatar
    AdamUTsel Posts: 100, Reputation: 2
    Junior Member
     
    #2

    Sep 24, 2008, 09:41 AM

    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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