CR) or debit (Abbrev. This is called a contra-account because it works opposite the way the account normally works. This balance signifies that a business has generated an aggregate profit over its life. However, the amount of the retained earnings balance could be relatively low even for a financially healthy company, since dividends are paid out from this account. 1 Answer to CLASSIFICATION OF ACCOUNTS INSTRUCTIONS:The customary classifications for accounts listed in the chart of accounts are listed below. The account Dividends (or Cash Dividends Declared) is a temporary, stockholders' equity account that is debited for the amount of the dividends that a corporation declares on its capital stock. d. stockholders' equity with a debit balance. Normal balance is the accounting classification of an account. Good luck. Some accounts have “Debit” Balances while the others have “Credit” balances. a. an expense with a debit balance ... Answer Save. For asset and expense accounts, the normal balance is a debit balance. 5. For Dividends, it would be an equity account but have a normal DEBIT balance (meaning, debit will increase and credit will decrease). True. D. Is recorded on the left side of a T-account. 2 Answers. 6. The classification and normal balance of the dividends account is Oa liability with a credit balance Oan expense with a credit balance Ostockholders' equity with a debit balance Oan expense with a debit balance It is part of double-entry book-keeping technique.. An account has either credit (Abbrev. b. revenue with a credit balance. The normal balance for Income Summary will be credit when there is a net income, debit when there is a net loss. Anonymous. The Normal Balance of the Dividends Account Is a _ Question 48. Lv 7. 1 decade ago. Normal balance is the accounting classification of an account. ... for each account and indicate the normal balance for each account by typing "Debit" or "Credit" in the space provided below for your answer. Identify the letter of the choice that best completes the statement or answers the question. ... Accounts Payable b. 6. In sole proprietorship, a single capital account titled as owner’s capital account or simply capital account … False. Like the debit to retained earnings, the amount credited will be the total value of the dividends declared. This balance signifies that a business has generated an aggregate profit over its life. - a revenue with a credit balance - an ecpense with a debit balance - a liability with a credit balance - stockholders equity with a debit balance b. an expense with a debit balance. 3 0. mclelland. Classification and Types of Accounts We record business transactions in accounts. DR) normal balance. The balance in capital account increases with the introduction of new capital and profits earned by the business and decreases as a result of withdrawals and losses sustained by the business. The classification and normal balance of the dividends account is:? At the end of the accounting year, the balance in the Dividends account is closed by transferring the account balance to Retained Earnings. 1 Answer. Answer Save. The dividends payable account recorded how much the company owes to shareholders between declaring a dividend and actually paying it. Dividends are not classified as an expense or liability on a balance sheet. The normal balance in the retained earnings account is a credit. Normal Balances in Accounting. The classification and normal balance of the dividend account is:? The normal balance of dividend is “Debit”.. Firstly, you should know what a normal balance in accounting means. To increase the value of an account with normal balance of credit, one would credit the account. Shareholders of record receive payment in the form of cash or electronic transfer based on how many shares of … If company has paid its dues or bills on time and lets say their credit terms are 30 days, if they pay with in 30 days, it is called the normal balance of a receivable account. a. an expense with a debit balance. We learned that net income is added to equity. Starting a Company (1) Issues 50,000 shares of $10 par value common stock at par value for cash. The normal balance of a capital stock account is a debit. DR) normal balance. Here is another account. good guy. The normal balance of the Dividends account is a _ because it decreases _ . answer choices . Normal balance Definition. We need to prepare one account for each type of asset, liability, income or expense. The normal balance of an expense account is a credit. b. updating. d. a liabilty with a credit balance. ... 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