Asked by Paola Zaragoza on Jul 17, 2024
Verified
The Dividends account is an expense.
Dividends Account
An account used to record the payment of dividends, which are distributions of a corporation's earnings to its shareholders.
Expense
Costs incurred in the process of earning revenue, typically including cost of goods sold, selling, general, and administrative expenses.
- Gain knowledge about the principle and ramifications of Unearned Revenues and Dividends in accounting practices.
Verified Answer
ZK
Zybrea KnightJul 20, 2024
Final Answer :
False
Explanation :
The Dividends account is not an expense, it is a distribution of earnings to shareholders. Expenses are recorded in accounts such as Rent, Salaries and Wages, and Supplies.
Learning Objectives
- Gain knowledge about the principle and ramifications of Unearned Revenues and Dividends in accounting practices.
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