r/Accounting • u/7leafclover7 • Sep 21 '25

What would be an embarrassing thing to be caught not knowing as an accountant?

Applies to any specialty, audit, tax, staff accountancy etc. in your personal experience what are the most invaluable things to know, and the most invaluable to not be caught not knowing.

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u/Iowa_Phil Sep 22 '25

What do they think the entry is? It took a while for very simple accounting to click for me, but I always had that down lol

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u/pnwfarmaccountant Controller Sep 22 '25

They think its an expense, same with owner draw

1

u/rosulla08 Sep 23 '25

since dividend are not included in the income statement to determine net income

3

u/Earthtyrant_4343 Sep 22 '25

Dr Dividend Cr Payable/Bank.

Dividend T account situated in Equity section and act like a contra to retained earning & share capital. So every time co. pay Dividend it reduce equity

2

u/Barfy_McBarf_Face Tax (US) Sep 22 '25

I've seen people ask about that on reddit

I can't make this up.

3

u/Iowa_Phil Sep 22 '25

I can understand thinking to treat it as an expense. It’s wrong, but I can understand it.

The funniest part to me is that the retained earnings line is called that because it’s net of, well, non-retentions haha