The dividends account is a subdivision of the retained earnings account and appears as an expense on the income statement.

Question

Quizplus · Accepted Answer

The dividends account is not a subdivision of the retained earnings account. Rather, it is a separate account that reflects payments made to shareholders. It appears as a reduction in the retained earnings account on the balance sheet and is not considered an expense on the income statement.

The Dividends Account Is a Subdivision of the Retained Earnings