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Is dividends payable a current liability?

Understand the Problem

The question is asking whether dividends payable should be classified as a current liability in financial accounting. This involves understanding the definitions and classifications of liabilities on a balance sheet.

Answer

a current liability.

The final answer is a current liability.

Answer for screen readers

The final answer is a current liability.

More Information

Dividends payable refer to the amount of dividend a company has declared but not yet paid to its shareholders. Since they are typically settled within a year, they are listed as current liabilities on the balance sheet.

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