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.

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Definitions:

Futures Contract

A legal agreement to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

Specified Amount

A clearly defined sum or quantity noted in a financial agreement or contract.

Predetermined Price

A specific price set in a contract or agreement, at which a particular transaction (such as buying or selling) will occur in the future.

Expiration Date

The specified date on which an options or futures contract becomes void and ceases to trade.