The Classification and Normal Balance of the Dividends Account Is

question 180

Multiple Choice

The classification and normal balance of the Dividends account is

• A)revenue with a credit balance.
• B)an expense with a debit balance.
• C)a liability with a credit balance.
• D)stockholders' equity with a debit balance.

---

Definitions:

Financial Reports

Documents that provide an overview of a business's financial condition in both short and long term.

Asset

Any resource owned by a business or an individual that is expected to provide future benefits.

Liabilities

Financial obligations or debts that a company or individual owes to others, which must be satisfied in the future.

Revenues

The total amount of money received by a company from its business activities, such as sales of goods or services, over a specified period.