The balance in Ordinary Share Dividend Distributable should be reported as a(n)
A)deduction from share capital-ordinary.
B)addition to share capital-ordinary.
C)current liability.
D)contra current asset.

Question

Quizplus · Accepted Answer

The balance in Ordinary Share Dividend Distributable is reported as an addition to share capital-ordinary because it represents dividends that have been declared but not yet distributed, effectively increasing the equity until paid out.

The Balance in Ordinary Share Dividend Distributable Should Be Reported