The Dividends Account Is an Expense

question 38

True/False

The Dividends account is an expense.

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Definitions:

Financial Statements

Structured reports that detail the financial performance of an organization, typically including the balance sheet, income statement, and cash flow statement.

Depreciation Expenses

The allocation of the cost of tangible assets over their useful lives, recognized as an expense on the income statement.

Retained Earnings

Profits that a company chooses not to distribute as dividends to shareholders but instead reinvests in the business or keeps as reserve.

Depreciation

A technique for distributing the expense of a physical asset across its lifespan.