What Are Dividends In Accounting

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Dividends are most commonly deposited into a shareholder’s brokerage account. However, if an investor buys shares directly from a company itself (through a direct investment plan like a DRIP, for …

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Dividend accounts are paid as part of the distribution from a Profit and loss account reserve. Use an Equity, Retained Earnings or Other Current Liability account when setting up a Dividend account.

When a corporation’s board of directors declares a cash dividend to its shareholders, the balance sheet account "retained earnings" is reduced by the amount of the dividend. Since retained …

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