The Classification and Normal Balance of the Dividends Account Is

question 46

Multiple Choice

The classification and normal balance of the dividends account is

• A) an expense 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:

Long-Term Assets

Assets that are expected to provide economic benefits to a firm for more than one fiscal year, such as land, buildings, and machinery.

Current Liabilities

A firm’s financial obligations to short-term creditors, which must be repaid within one year.