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12y ago

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Is dividends an asset on the balance sheet?

If dividend payable then liability if dividend receivable then it is asset if dividend paid then it is not part of balance sheet.


What accounts do you adjust in a T account when dividend is paid?

When a dividend is paid, the T-accounts that are adjusted are the Dividends Payable account and the Cash account. Dividends Payable, a liability account, is debited to decrease it, reflecting the payment of the dividend. At the same time, the Cash account, an asset account, is credited to reduce the cash balance, as cash is being paid out to shareholders.


Is a dividend an asset or liability?

Investments are seen as current assets if the firm intends to sell them within a year. Long-term investments (also called "noncurrent assets") are assets that they intend to hold for more than a year. check link in bio for more information


Is proposed dividend a current liability or current asset?

Proposed dividends are considered a current liability. Once a company's board of directors declares a dividend, it becomes a legal obligation for the company to pay that amount to shareholders, typically within the next accounting period. This obligation is recorded on the balance sheet as a liability until the dividend is paid.


Are Advance paid a current asset or current liability?

advance paid is current asset and advance received is current liability.


Where do dividends on the financial statements?

Dividends are reported on the income statement?


How do you post paid a cash dividend in accounting?

[Debit] Dividend xxxx [credit] cash / bank xxxx


Does a decrease in prepaid expenses increase cash flow?

No, it does not. You already paid for it. The cash involved is gone. Whatever was pre-paid has decreased in value as an asset. It's not a liability, equity, revenue, nor an expense. It would have to be an increase in another form of an asset. Accumulated depreciation is likely the asset that would increase.


When a cash dividend is declared it would affect the balance sheet but not the statement of cash flows?

dividend will affect the cash flow when actual cash is paid and not at the time of declaration of dividend.


Cash dividend decleared 40000 what is impact of cash flow?

In Cash flow under the financing activities shown as dividend paid.


Does a declared dividend become a liability if not paid?

Yes, once a dividend is declared by a company's board of directors, it becomes a liability on the company's balance sheet, even if it has not yet been paid. This liability reflects the company's obligation to distribute the declared amount to shareholders. If the dividend is not paid, it remains a liability until it is settled or canceled, impacting the company's financial statements.


Do Dividends paid belong in the operating section of the satement of cash flows?

dividend paid belongs to financing activities in cash flow statement as dividend is paid to stockholders who invests in company.