Stocks

What Is A Dividend Account?

When a company declares capital stock dividends, the dividends are debited to the Dividends (or Cash Dividends Declared) account, which is a temporary shareholders’ equity account. The balance in the Dividends account is closed at the conclusion of the accounting year by moving the balance to Retained Earnings. (When dividends are declared, corporations can directly […]

What Is A Dividend Account? Read More »