Question: How are dividends treated in a double-entry system? A they are credited to increase them, because they are a part of stockholders equity. B :

How are dividends treated in a double-entry system?

A

  • they are credited to increase them, because they are a part of stockholders equity.

  • B :

    They are debited to increase them, because they are assets.

  • C :

    They are debited to increase them, despite being a part of stockholders equity.

  • D :

    They are credited to increase them, because they are liabilities.

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