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    Help Please's Avatar
    Help Please Posts: 1, Reputation: 1
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    #1

    Aug 14, 2006, 02:15 PM
    Dividends
    I'm just beginning to learn accounting, but was wondering can dividends EVER in the accounting process be considered expenses.

    Thanks
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Aug 14, 2006, 07:56 PM
    Help Please,

    No, dividends can NOT be considered an expense in the accounting process.

    Why not?

    Because dividends are a distribution of the companies equity.

    Remember,
    Assets – Liabilities = Equity.
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