The account used to record the transfers of assets from a business to its stockholders is:
A)A revenue account
B)The dividends account
C)Common stock account
D)An expense account
E)A liability account

Question

Quizplus · Accepted Answer

The dividends account is used to record the transfers of assets from a business to its stockholders. Common stock account represents the initial investment made by the owners and is not used for recording transfers of assets. Revenue and expense accounts are used for recording the revenue earned and expenses incurred in the normal course of business. Liability accounts represent the amount of money owed to others and are not used for recording transfers of assets to stockholders.

The Account Used to Record the Transfers of Assets from a Business