Identify the account used by businesses to record the transfer of assets from a business to its stockholders:
A)A revenue account.
B)The Dividends account.
C)The Common stock account.
D)An expense account.
E)A liability account.

Question

Quizplus · Accepted Answer

The Dividends account is used to record the transfer of assets (usually cash) from a business to its stockholders as dividends. Common stock account would be used to record the issuance of stocks to stockholders, not the transfer of assets. Revenue, expense, and liability accounts are not relevant to this transaction.

Identify the Account Used by Businesses to Record the Transfer