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No they are considered earnings to be paid to stockholders.

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Q: Are dividends a form of a business expense?
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Are dividends payable an expense or owner equity?

Dividend payable are from current year's net income portion it is liability of business as soon as dividend declared.


Dividend account is treated as either asset account liability account or expense account?

Hi, Dividends are paid out of retained earnings (part of Capital) therefore I think Dividends can not be treated as an expense (the prudence being increase in Capital can not be treated as Revenue thats Cash generation while dividends are Surplus appropriation). regards, Zeeshan


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