What type of account is increased with a debit but represents a decrease in retained earnings?

Name: What type of account is increased with a debit but represents a decrease in retained earnings?
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Question

Quizplus · Accepted Answer

Dividends represents a distribution of profits to shareholders and therefore reduces the amount of earnings that are retained by the company. When dividends are declared and paid, the retained earnings account is decreased and the dividends account is increased with a debit.

What Type of Account Is Increased with a Debit but Represents