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:

Related Book For book-img-for-question

Using Financial Accounting Information The Alternative to Debits and Credits

ISBN: 978-1133161646

7th Edition

Authors: Gary A. Porter, Curtis L. Norton

See More Books

Question Posted: Jan 12, 2012 02:25 AM

See More 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...
A metal salt with the formula MCl 2 crystallizes from water to form a solid with the composition MCl 2 6 HO. The equilibrium vapor pressure of water above this solid at 298 K is 18.3 mmHg. What is...
Model equations similar to those for potential flow arise in flow in porous media, which has a wide variety of applications, e.g., in groundwater treatment, water-purity remediation, filtration, flow...
What is the net advantage to leasing (NAL)? Does your analysis indicate that Lewis should buy or lease the equipment? Explain. MINI CASE Lewis Securities Inc. has decided to acquire a new market data...
On 1 April 2021, Tencent stock price was $630 Tencent: 630 call $26.00; 600 call $43.80; 660 call $14.30 and Tencent. 630 put $22.90; 600 put $11.27; 660 put $41.70. 100 shares) Both call and put...
Janet Enterprises incorporated on May 3, current year. The company engaged in the following transactions during its first month of operations. May 3 Issued capital stock in exchange for $950,000...
A friend comes to you with the following plight: Im confused. An asset is something positive, and it is increased with a debit. However, an expense is something negative, and it is also increased...
If Cash is increased with a debit, why does the bank credit your account when you make a deposit?
Whaley Distributors is a wholesale distributor of electronic components. Financial statements for the years ended December 31, 2019 and 2020, reported the following amounts and subtotals ($ in...
Describe five different ways of producing an IntStream. Which of them can be adapted to producing a DoubleStream?
Write a static generic method: that returns a list of the values returned by the function when called with arguments in the values list. List map (List values, Function f)
Give a SQL query that lists all customers not in Hawaii. Invoice Invoice_ Number INTEGER 11731 11732 11733 Customer_ Number INTEGER 3175 3176 3175 Payment DECIMAL (10, 2) 0 249.50 0
Modify the WebGet program to print only the title of the returned HTML page. An HTML page has the structure ... ... For example, if you run the program by typing at the command line java WebGet...
Provide a static method that reverses the elements of a generic array list.
Eurasion Natural Resources Corporation currently has 2.4 million shares outstanding that sell for 5.16 per share. Assuming no market imperfections or tax effects exist, what will the share price be...
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...
Melissa Cutt is thinking about buying some shares of EZLawn Equipment, at $36.44 per share. She expects the price of the stock to rise to $43.62 over the next 3 years. During that time she also...
At the beginning of the week, Taylan's restaurant had a beginning inventory of food and beverages totaling $4,000. During the week, additional food and beverages purchases totaled $3,000. At the end...
1. Identify the auditor's role in the internal and external auditing processes. 2. Identify one law, regulation, and statue affecting healthcare

The payment of dividends reduces cash. If the Cash account is reduced with a credit, why is

Question:

Step by Step Answer:

There are two sides to every transaction The two sides of the tra...View the full answer

Using Financial Accounting Information The Alternative to Debits and Credits

Students also viewed these Accounting questions