Asked by Paola Zaragoza on Jul 17, 2024

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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.
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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.