Which of the Following Accounts Does Not Belong in the Liability

question 21

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:

Attorney-In-Fact

An agent who is given express, written authorization by his principal to do a particular act or series of acts on behalf of the principal.

Express Authorization

Explicit permission granted by one party to another to perform actions or activities on its behalf.

Principal

In agency law, one under whose direction an agent acts and for whose benefit that agent acts.

Implied Trust

A trust not created by explicit words but inferred by law to avoid injustice or to reflect the presumed intention of the parties involved.