Common Stock Dividends Distributable is shown within the Paid-in Capital subdivision of the stockholders' equity section of the balance sheet.

Question

Quizplus · Accepted Answer

This is true. Common Stock Dividends Distributable represents the portion of dividends declared by a company's board of directors that have not yet been paid to investors. It is recorded as a liability on the balance sheet within the Paid-in Capital subdivision of the stockholders' equity section until the dividends are paid.

Common Stock Dividends Distributable Is Shown Within the Paid-In Capital