In Cash flow under the financing activities shown as dividend paid.
stock dividends what impact on total assets
A declared cash dividend is recorded by debiting the dividend account and crediting the dividend payable account.
dividend will affect the cash flow when actual cash is paid and not at the time of declaration of dividend.
It is a Cash Dividend
Dividend receivable Debit Cash dividend Credit Cash Debit Dividend receivable Credit
if receiveddebit cash / bankcredit dividend incomeif paydebit dividendcredit cash / dividend payable etc
A stock dividend is when a company distributes additional shares of its stock to shareholders, while a cash dividend is when a company pays out cash to shareholders as a form of profit sharing.
If we pay Dividend the cash flow will decrease as money will go out
[Debit] Dividend xxxx [credit] cash / bank xxxx
[Debit] Dividend [Credit] Cash
Cash dividend affects the cash and remaining items does not have any effect on cash like depreciation or accounts payable.
Date of Declaration