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.
Sources
- Dividends Payable - wallstreetprep.com
- What Are Examples of Current Liabilities? - Investopedia - investopedia.com
- 5.11 Dividends - Viewpoint (pwc.com) - viewpoint.pwc.com
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