Explain why the Dividends account is closed directly to the Retained Earnings account.

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Financial and Managerial Accounting the basis for business decisions

ISBN: 978-0078111044

16th edition

Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello

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Question Posted: Jun 10, 2016 05:12 AM

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Explain why the Dividends account is closed directly to the Retained Earnings account.

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Dividends paid to stockholders are not considered an expense of the business and therefore ar...View the full answer

Financial and Managerial Accounting the basis for business decisions

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