Common Stock Dividends Distributable is classified as a(n)
A) asset account.
B) stockholders' equity account.
C) expense account.
D) liability account.

Question

Quizplus · Accepted Answer

Common Stock Dividends Distributable is classified as a stockholders' equity account because it represents an amount that is set aside by the company to be distributed to shareholders as dividends, but has not yet been paid out.

Common Stock Dividends Distributable Is Classified as A(n)