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Q. Dividends paid to owners?
Stockholders' equity is (a) improved by capital contributed by stockholders and by revenues earned through operations and (b) decreased by expenses incurred in producing revenues. The payment of cash or other assets to stockholders in the form of dividends as well reduces stockholders' equity. Therefore if the owners receive a cash dividend the effect would be to reduce the retained earnings part of stockholders' equity the amount of dividends is not an expense but a distribution of income.
Q. What do you mean by Not-for-profit organizations? Not-for-profit organizations such like charities, fraternities, churches, and universities need accountants to record and a
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