Asked by Jennie Castillo on Jun 24, 2024
Verified
Which of the following is not considered to be an asset?
A) equipment
B) dividends declared
C) accounts receivable
D) inventory
Dividends Declared
Dividends that have been announced by a company's board of directors and are to be paid out to shareholders on a specified date.
- Distinguish the parts of financial statements and how they are measured.
Verified Answer
AT
ARLANG TROYNJun 30, 2024
Final Answer :
B
Explanation :
Dividends declared are not considered an asset; they represent a distribution of earnings to shareholders and reduce the equity of a company, not an asset held by the company. Equipment, accounts receivable, and inventory are all considered assets as they provide future economic benefits to the company.
Learning Objectives
- Distinguish the parts of financial statements and how they are measured.