A business paid cash dividends to shareholders.Which of the following accounts will be credited?

Name: A business paid cash dividends to shareholders.Which of the following accounts will be credited?
Brand: Quizplus
Rating: 4.7 (52 reviews)

Question

Quizplus · Accepted Answer

Cash will be credited because cash is being paid out to shareholders as dividends. Common Stock and Accounts Payable are not affected by the payment of dividends. Dividends is the account being debited, not credited.

A Business Paid Cash Dividends to Shareholders