Dividends normally carry a _______ balance and are shown in the ______________.

Name: Dividends normally carry a _______ balance and are shown in the ______________.
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Question

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Dividends carry a debit balance because they represent a distribution of earnings to shareholders, reducing retained earnings. They are shown in the statement of stockholders' equity, not on the income statement or balance sheet, because they are transactions with shareholders and affect the equity section of the financial statements.

Dividends Normally Carry a _______ Balance and Are Shown in the ______________

Dividends Normally Carry a _ Balance and Are Shown in the ________