Common stock dividend distributable

What is the Common Stock Dividend Distributable?

A common stock dividend distributable is a dividend payable to the holders of a corporation’s common stock that has been declared by the entity’s board of directors, but not yet paid. Once declared, this amount is classified as a liability of the corporation. It is usually classified as a current liability on the entity’s balance sheet, since it is (usually) to be paid out within one year.

An alternative definition is that this is a dividend payable in the corporation’s common stock, rather than in cash.

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