The Dividends paid account:
A) normally has a credit balance.
B) increases equity.
C) is increased with debits and decreased with credits.
D) is not a proper sub-account of equity.

Name: The Dividends paid account: A) normally has a credit balance. B) increases equity. C) is increased with debits and decreased with credits. D) is not a proper sub-account of equity.
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Question

Quizplus · Accepted Answer

As dividends reduce equity, the Dividends paid account is increased with a debit and reduced with a credit.

The Dividends Paid Account