What Account Would Not Be Found in the Stockholders' Equity

question 65

Multiple Choice

What account would not be found in the stockholders' equity section of the balance sheet?

• A)paid-in-capital
• B)common stock
• C)retained earnings
• D)treasury stock
• E)bonds payable

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Definitions:

Inventory Returns Estimated

An approximation of the value or volume of goods that will be returned from customers back to the inventory.

Sales Refund Payable

A liability account that holds funds reserved for future refunds to customers for returned goods.

Sales Returns

Goods returned by customers to the seller after the sale, which result in a reduction of revenue previously recognized.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditure to the correct periods.