Asked by Kelsey Brianne on Apr 27, 2024
Verified
All of the following are liabilities EXCEPT
A) accumulated profits not paid in dividends.
B) accounts payable.
C) bank loans.
D) wages payable.
Accumulated Profits
The retained earnings of a company, representing the net income that has not been distributed to shareholders as dividends and is reinvested in the business.
- Master the essential concepts behind assets, liabilities, and equity.
Verified Answer
JB
Jawad BajwaApr 27, 2024
Final Answer :
A
Explanation :
Accumulated profits not paid in dividends are not considered liabilities; instead, they are part of retained earnings, which represent the portion of net income that has been retained by the company rather than distributed to its owners as dividends.
Learning Objectives
- Master the essential concepts behind assets, liabilities, and equity.