Which of the Following Is Not a Liability

question 49

Multiple Choice

Which of the following is not a liability?

• A) An unused line of credit.
• B) Estimated income taxes.
• C) Sales tax collected from customers.
• D) Advances from customers.

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Definitions:

Tax-Exempt

Financial earnings that are not subject to taxation by the government, often applied to certain bonds and municipal securities.

Preferred Stock

Nonvoting shares in a corporation, paying a fixed or variable stream of dividends.

Cumulative Dividends

Dividends that are owed to preferred shareholders of a company and must be paid out before dividends can be distributed to common shareholders.

Voting Power

Voting power refers to the number of votes a shareholder has in a company's decisions, typically based on the number of shares held.