Which of the Following Accounts Is Not Included in the Calculation

question 86

Multiple Choice

Which of the following accounts is not included in the calculation of a company's ending stockholders' equity?

• A)Revenues.
• B)Expenses.
• C)Dividends.
• D)Common stock.
• E)Cash.

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Definitions:

Relevant Range

The span of operations where the presuppositions regarding variable and fixed cost dynamics remain applicable.

Sunk Cost

Costs that have already been incurred and cannot be recovered, which should not affect future business decisions.

Marginal Cost

The cost incurred by producing one additional unit of a product or service.

Indirect Cost

Expenses not directly tied to the production of goods or services, such as administration, rent, and utilities.