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

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9y ago
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3y ago

Owner equity

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Q: Are dividends payable an expense or owner equity?
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Related questions

Are dividends owner's equity or asset or liability or revenues?

If your divident is the result of your own investment, it is an asset. Divident payable is a liability.


Is wage expense a liability or owner's equity?

neither


Is expense decreases owner's equity?

no if the owner expense money on his property it w'll increase the value not decrease (shaista)


When an accounts payable account is paid in cash the owner's equity in the business decreases True or False?

False. Payment of an accounts payable reduces cash and reduces accounts payable. Equity is not affected.


Is wage expense asset liability or owner's equity?

neither


What is the journal entry if an owner makes payments on a company loan and he will not be reimbursed by the company?

debit loan accountcredit owners equityDebit Loan Payable Debit Interest Expense Credit Paid in Capital


Expanded accounting equation?

Assets =Liabilities +(Stockholders' Equity=Paid-in Capital + Revenues - Expenses - Dividends - Treasury Stock. )Assets =Liabilities +(Owner's Equity=Owner's Capital + Revenues - Expenses - Owner's Draws.)


Is it true When cash is paid for an expense is assets increase owner's equity increases?

no


Would Accounts payable go under statement of changes in owner's equity in a financial statement?

No. Accounts payable is a liability account, which is used in the balance sheet.


Which of the following errors would cause the Balance Sheet and Statement of Owner's Equity columns of a work sheet to be out of balance?

entering an expense amount in the balance sheet and statement of owner's equity debit column.


Definition of contra equity?

Contra Equity refers to an equity account with a normal debit balance, where as other standard equity accounts have normal credit balances. Expense accounts are contra equity accounts because they are used to find totals for a debit of the owner's equity account.


How do you calculate gross equity?

Owner's Equity = Contributed Capital ± Retained Earnings Contributed capital is money that has been contributed to a company by its owners or by a direct investment made by stockholders in a corporation. A company would have stockholders if that company sells shares or stock. Retained earnings is a companys' accumulated profits that have been put back or reinvested into the company. Some examples of retained earnings are supplies expense, rent expense, wages expense, interest expense, utilities expense, sales revenue, cost of goods sold, and depreciation expense. A return on equity (ROE) is the net income divided by stockholders' equity. Assets = Liabilities + Owners Equity