How are dividends that have been declared and authorised but remain unpaid at the end of the year, recorded in the statement of financial position?

Question

Quizplus · Accepted Answer

Dividends that have been declared and authorised but remain unpaid at the end of the year are recorded as a current liability in the statement of financial position because they represent an obligation of the company to pay out funds to its shareholders. These unpaid dividends are typically listed under "current liabilities" on the balance sheet.

How Are Dividends That Have Been Declared and Authorised but Remain