Dividends is a temporary account of a corporation and is similar to which proprietorship account?
A) Equity.
B) Contributed Capital.
C) Drawing.
D) none of these.

Question

Quizplus · Accepted Answer

Dividends in a corporation are similar to the Drawing account in a proprietorship. Both accounts represent distributions to owners—dividends distribute profits to shareholders, while drawings represent withdrawals of business assets by the owner for personal use.

Dividends Is a Temporary Account of a Corporation and Is