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Q: How are expenses and dividends similar?
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Continue Learning about Accounting

What is a slim profit margin?

Profit margins are usually deducted from all costs, depreciation, interest, taxes, and other expenses. The formula is: (Total Sales - Total Expenses) / Total Sales = Profit Margin Note that preferred stock dividends are usually calculated, but not ordinary stock dividends.


What are the four major types of transactions that affect equity?

revenue expenses dividends and common stock


What is the similarities and difference between dividends and expenses?

A real differrence between dividends and expences is that dividends are being produced from a net account and from which use a firm could profit themselves.Expences are the daily outlays which are being used to comfort are daily life routines.


Which of the following are income tax deductible items to a corporation Common stock dividends preffered stock dvidends retained earnings or Bond interest expenses?

Interest expenses are tax deductible.


What is an expanded basic accounting equation?

The expanded accounting equation replaces Owner's Equityin the basic accounting equation (Assets = Liabilities + Owner's Equity) with the following components: Owner's Capital + Revenues - Expenses - Owner's Draws. In other words, the expanded accounting equation for a sole proprietorship is: Assets = Liabilities + Owner's Capital + Revenues - Expenses - Owner's Draws.In the expanded accounting equation for a corporation, Stockholders' Equity in the basic accounting equation (Assets = Liabilities + Stockholders' Equity) is replaced by these components: Paid-in Capital + Revenues - Expenses - Dividends - Treasury Stock. The resulting expanded accounting equation for a corporation is: Assets = Liabilities + Paid-in Capital + Revenues - Expenses - Dividends - Treasury Stock.The expanded accounting equation allows you to see separately (1) the impact on equity from net income (increased by revenues, decreased by expenses), and (2) the effect of transactions with owners (draws, dividends, sale or purchase of ownership interest).

Related questions

Are dividends a credit or debit?

Dividends have a normal Debit balance. An easy way to remember this is "DEAD": Debits are Expenses, Assets, and Dividends.


What is a slim profit margin?

Profit margins are usually deducted from all costs, depreciation, interest, taxes, and other expenses. The formula is: (Total Sales - Total Expenses) / Total Sales = Profit Margin Note that preferred stock dividends are usually calculated, but not ordinary stock dividends.


What are the four major types of transactions that affect equity?

revenue expenses dividends and common stock


What is the similarities and difference between dividends and expenses?

A real differrence between dividends and expences is that dividends are being produced from a net account and from which use a firm could profit themselves.Expences are the daily outlays which are being used to comfort are daily life routines.


Which of the following are income tax deductible items to a corporation Common stock dividends preffered stock dvidends retained earnings or Bond interest expenses?

Interest expenses are tax deductible.


Can pay dividends even there is an unpaid subscribed capital stock?

cash dividends due on delinquent stock shall first be applied to the unpaid balance on the subscription, plus costs and expenses. stock dividends shall be withheld from the delinquent stockholder until his unpaid subscription is fully paid.


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.)


What is the difference between Dividends per share and Earnings per share?

For my opinion Earning par share refer to a full dividend after expenses. But if we have prefered stock we need to seperate prefered stock dividends and take its balance for common stock dividends by:Earning per share = Balance after prefered stock dividends / Number of shareOne more Dividends per share refer to balance for common stcok after we seperate balance after prefered stock dividends to both side, common stockdividends and retained earning.Dividends per share = Common stock dividends / Number of shareis that right? if another have any ideas please let me know.Thanks.!


What is an example of an asset use transaction?

RCS Paid $50,000 cash for operating expenses such as salaries, rent, and intrest. RCS Paid $4,000 cash in dividends to its owners.


Net income formula?

Net income represents the amount of money remaining after all operating expenses, interest, taxes and preferred stock dividends have been deducted from a company's total revenue. The formula is Total Revenue - Total Expenses = Net Income.


What dividends did Hambrecht's attention to profit and to the company's bottom line pay?

big dividends for BASF during the first two years of his tenure as chairman. As part of his business strategy he gave instructions to limit capital expenditures to areas where profits after taxes and expenses exceeded the original capital investment


What is an expanded basic accounting equation?

The expanded accounting equation replaces Owner's Equityin the basic accounting equation (Assets = Liabilities + Owner's Equity) with the following components: Owner's Capital + Revenues - Expenses - Owner's Draws. In other words, the expanded accounting equation for a sole proprietorship is: Assets = Liabilities + Owner's Capital + Revenues - Expenses - Owner's Draws.In the expanded accounting equation for a corporation, Stockholders' Equity in the basic accounting equation (Assets = Liabilities + Stockholders' Equity) is replaced by these components: Paid-in Capital + Revenues - Expenses - Dividends - Treasury Stock. The resulting expanded accounting equation for a corporation is: Assets = Liabilities + Paid-in Capital + Revenues - Expenses - Dividends - Treasury Stock.The expanded accounting equation allows you to see separately (1) the impact on equity from net income (increased by revenues, decreased by expenses), and (2) the effect of transactions with owners (draws, dividends, sale or purchase of ownership interest).