Which of the Following Accounts Does NOT Belong in the Liability

question 52

Multiple Choice

Which of the following accounts does NOT belong in the liability section of a balance sheet?

• A) accruals
• B) short-term debt
• C) additional paid-in capital
• D) long-term debt

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Definitions:

Compounded Annually

The calculation of interest on the principal sum of a deposit or loan, where the interest is added once per year.

Compounded Monthly

An interest calculation method where the interest earned is added to the principal every month, thus earning interest on interest from the preceding month.

Withdraw

To remove funds from an account, or to take back or remove an offer, statement, or participation.

Compounded Annually

Interest calculated on the principal and previously accumulated interest once a year.