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Aug 29, 2019 10:14 AM UTC
Question

In the standard chart of accounts corporation tax and dividend show as expense accounts. surely these should be equity?

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1 reply

Rustler
Aug 29, 2019 11:04 AM UTC

tax due is a liability until paid, then it is an expense

 

same for dividends, when the board of directors authorizes a dividend it is a liability, when paid it becomes an expense