The normal balance of the Dividends account is a ___________ because it decreases __________.
A)debit, assets
B)debit, expenses
C)debit, stockholders' equity
D)credit, stockholders' equity

Question

Quizplus · Accepted Answer

The Dividends account has a normal debit balance because it decreases stockholders' equity. Dividends represent a distribution of earnings to shareholders, reducing the retained earnings component of stockholders' equity.

The Normal Balance of the Dividends Account Is a ___________