The Normal Balance of the Dividend Account Is a Credit

question 167

True/False

The normal balance of the dividend account is a credit.

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Definitions:

Equity Method

An accounting technique used to record investments in associated companies, where the investment is initially recorded at cost and adjusted thereafter for the investor's share of the investee's profits or losses.

Book Value

The value of an asset as recorded on the balance sheet, calculated by deducting the accumulated depreciation or amortization from the asset's original cost.

Equity Method

An accounting technique used to record investments in associate companies, reflecting the investor's share of the earnings.