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Dividends Payable
![Dividends are considered a form of passive income for investors.](../../../../../../../../../figures.boundless-cdn.com/12592/full/ns-and-dividends-282006-29.gif)
Dividends are considered a form of passive income for investors.
Companies that declare dividends must record a liability for the amount of the dividends that will be paid to investors.
Source
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"Percent of Income from Capital Gains and Dividends (2006)."
http://commons.wikimedia.org/wiki/File:Percent_of_Income_from_Capital_Gains_and_Dividends_(2006).gif
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