Accounts/Fin Statement Element

liability, received, anybody, element

Hello everybody
In Schweser rd 30 Comprehensive problem; there is a list of accts that you have to match with the right element asset, liability, owners’ equity, revenue or expense.
a) Other comprehensive income is classified as owners equity (I classified it as revenue, but seems to be wrong)
b) and dividends received as revenue but
c) dividends payable as a liability
Can anybody explain to me why?
Thanks in advance.

dirk01

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发表于 2013-4-8 17:31 | 只看该作者

div payable is something that the company must pay its shareholders, but has postponed, decided not to pay now. Something due in the future. So it is a liab.

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cfa10yrplan

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发表于 2013-4-8 17:31 | 只看该作者

a) other comprehensive income is income but recorded directly in equity, i.e. doesn’t go through P&L therefore classified as equity,
b) dividends received revenue something a company receives (how to explain it differently?),
c) dividends payable are liability to shareholders it doesn’t go through P&L but rather is “reclassified” from equity, after an entity decides to pay a dividend, to liabilities,

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Gypsy