The dividends account is a subdivision of the retained earnings account and appears as an expense on the income statement.

Question

Quizplus · Accepted Answer

The dividends account is actually a subdivision of the equity section of the balance sheet, not the retained earnings account. Dividends do not appear as an expense on the income statement, but rather as a deduction from the net income in the statement of changes in equity.

The Dividends Account Is a Subdivision of the Retained Earnings