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.
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.
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,
Thank you very much! Just a small question probably a very stupid one. What does P&L stand for? Thanks
Profit and Loss account
Sorry for abbreviation 
Thanks! Your comments helped me a lot. Take care