The Dividends Account Is

question 36

Multiple Choice

The dividends account is

• A) An asset
• B) An expense
• C) A revenue
• D) None of these are correct

---

Definitions:

Payment of Account

The process of settling a liability or an amount owed to a creditor, vendor, or supplier by making a cash or electronic payment.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its credit sales, calculated as sales divided by average accounts receivable.

Days' Sales in Receivables

A financial metric that estimates the average number of days it takes a company to collect payments after a sale has been made.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, typically comprising the balance sheet, income statement, and cash flow statement.