Which of the Following Accounts Is Not Included in the Liability

question 197

Multiple Choice

Which of the following accounts is not included in the liability section of the balance sheet?

• A)Accounts receivable.
• B)Wages payable.
• C)Accounts payable.
• D)Notes payable.
• E)Taxes payable.

---

Definitions:

Dividends

Dividends are a portion of a company's earnings that are distributed to shareholders as a reward for their investment.

Depreciation Expense

The allocation of the cost of a tangible fixed asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.

Interest Expense

Expenses related to borrowed capital for an entity, which includes loans, bonds, and lines of credit.

Prior Year

Refers to the accounting period immediately preceding the current period, often used for comparative financial analysis.