The payment of dividends reduces cash. If the Cash account is reduced with a credit, why is
Question:
The payment of dividends reduces cash. If the Cash account is reduced with a credit, why is the Dividends account debited when dividends are paid?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 53% (15 reviews)
There are two sides to every transaction The two sides of the tra...View the full answer
Answered By
Joseph Mwaura
I have been teaching college students in various subjects for 9 years now. Besides, I have been tutoring online with several tutoring companies from 2010 to date. The 9 years of experience as a tutor has enabled me to develop multiple tutoring skills and see thousands of students excel in their education and in life after school which gives me much pleasure. I have assisted students in essay writing and in doing academic research and this has helped me be well versed with the various writing styles such as APA, MLA, Chicago/ Turabian, Harvard. I am always ready to handle work at any hour and in any way as students specify. In my tutoring journey, excellence has always been my guiding standard.
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1133161646
7th Edition
Authors: Gary A. Porter, Curtis L. Norton
Question Posted:
Students also viewed these Accounting questions
-
(a) How does the payment of dividends of $40,000 affect the three elements of the accounting equation? (b) Is net income affected by the payment of dividends? Explain.
-
(a) How does the payment of dividends of $30,000 affect the three elements of the accounting equation? (b) Is net income affected by the payment of dividends? Explain.
-
(a) How does the payment of dividends of $15,000 affect the three elements of the accounting equation? (b) Is net income affected by the payment of dividends? Explain.
-
__________ is the process that occurs when a job applicant does research on an organization and concludes there is enough of a fit between themselves and a job opening to warrant submitting their...
-
Delray Inc. follows IFRS and has the following amounts for the year ended December 31, 2017: gain on sale of FV-NI investments (before tax), $15,000; loss from operation of discontinued division (net...
-
Gentry Miller Sunglasses sell for $150 per pair. Suppose the company incurs the following average costs per pair: Direct materials...
-
Two machines are used to fill cans. The machines are supposed to fill each can with 12 ounces of liquid. The amounts actually filled follow a normal distribution. A simple random sample of 10 cans is...
-
Suppose that in court, Durbin argues that because the school closed down before he could finish his education, there was a failure of consideration: he did not get something of value in exchange for...
-
You have obtained data in an WGS84 (CSRS), UTM coordinate system (zone17) and wish to include it in a project in a WGS84 (CSRS), MTM coordinate system. Describe conceptually the operations that you...
-
Sanderson is a bus driver who earns a monthly gross income of $3,500. His wife Norma is the manager of an automotive parts store and she earns gross income of $2,250 every two weeks. The couple has...
-
A friend comes to you with the following plight: Im confused. An asset is something positive, and it is increased with a debit. However, an expense is something negative, and it is also increased...
-
If Cash is increased with a debit, why does the bank credit your account when you make a deposit?
-
Diatomic deuterium has classical vibration frequency 9.35x10 13 Hz and rotational inertia 9.17x10 -48 kg m 2 . Find (a) the energy (b) the wavelength of a photon emitted in a transition between the n...
-
An object moves in the positive x - direction with a constant acceleration. At x = 4 . 9 0 m , its speed is 7 . 0 0 m / s; 2 . 2 0 s later, the object is at x = 6 0 . 0 m . What is the magnitude of...
-
How can conflict resolution practitioners leverage principles of complexity theory and systems thinking to analyze the interconnectedness of factors contributing to conflict dynamics and identify...
-
A 0 . 2 0 0 kg mass hangs from a string and forms a conical pendulum. The period of the pendulum in a perfect circle is 2.6 s while the ball is traveling 2 m / s . What is the angle of the pendulum?...
-
5 dynes of force acts on a body of mass 1 0 grams for 2 0 seconds. Find the speed of the body after 2 0 seconds and after 3 7 . 5 3 seconds.
-
What is the power and electric efficiency of the cycle and mm and r245fa?
-
Write a message that targets university students and persuades them to start a retirement account. Youll find lots of information online about the benefits of starting a retirement account early....
-
Suppose the concentration of glucose inside a cell is 0.1 mm and the cell is suspended in a glucose solution of 0.01 mm. a. What would be the free energy change involved in transporting 10-o mole of...
-
Cometh the hour, cometh the leader. Discuss this statement in the light of the approaches to leadership discussed in this chapter.
-
You are considering making a loan to The Coca-Cola Company. The following information is from the financial statements included in Form 10-K for fiscal years 2014 and 2013 (in millions of dollars):...
-
Gas stations sometimes sell gasoline at a lower price to customers who pay cash than to customers who use a credit card. A local gas station owner pays 2% of the sales price to the credit card...
-
Swartz Inc. enters into the following transactions during 2017: July 1: Paid $10,000 to acquire on the open market $10,000 face value of Gallatin bonds. The bonds have a stated annual interest rate...
-
Captain Picard orders, \"tea, earl grey, hot\" from the replicatoron the Enterprise, but the machine malfunctions and it is much toohot, 65.0 o C. Because this has happened before, Captain Picard...
-
What is the concentration in molarity of carbon dioxide in a carbonated drink if the CO2 partial pressure is 229 kPa? ( Henry's Law Constant for CO2 in water at 25 C is 3.4 X 102 M/atm) (1 atm =...
-
To complete this key resonance structure showing the effect OCH3 on OH Draw key resonance structure. Which symbol / word is needed? 1 OH 2 6 H3C 8- 8+ no .. -bond stable unstable ne A B C D E F G H I...
Study smarter with the SolutionInn App