Where Do Dividends Payable Go on a Balance Sheet?


Quick Answer

In accrual accounting, dividends payable go in the liabilities section of the balance sheet under current liabilities. The liabilities section accounts for the amount that is owed, and current liabilities are what is owed and has to be paid within one year.

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Full Answer

Dividends are the amount of profit that is owed to a company’s shareholders. Dividends payable is the amount that a company owes in dividends that has yet to be paid. A company pays dividends in the form of cash or additional stock. When a dividend is paid, the dividends payable account is debited, and the cash account is credited.

Other current liabilities include accounts payable, accrued benefits and payroll, short-term debt and current long-term debt.

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