Which of the Following Accounts Is Not a Stockholders' Equity

question 57

Multiple Choice

Which of the following accounts is not a stockholders' equity account?

• A) Common Stock
• B) Retained Earnings
• C) Notes Payable
• D) Dividends

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Definitions:

Incorporation Process

The incorporation process involves the legal procedure of creating a corporation, which is a type of recognized legal entity separate from its owners, providing limited liability and other benefits.

Statutory Agent

A person or entity appointed to receive legal documents on behalf of a corporation or other legal entity.

Individually Liable

Responsibility of a person to bear the loss or fulfill obligations from their personal assets, independently of others' liabilities.

Preincorporation Contracts

Agreements entered into on behalf of a corporation not yet legally formed, which may bind the corporation once it comes into existence.