BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is not a liability?
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Stock
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Credit Card Balance
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Car Loan
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Mortgage
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Explanation:
Detailed explanation-1: -The correct option is B. Common stock. Explanation: Common stock is neither classified as an asset or a liability.
Detailed explanation-2: -Redeemable debentures are not current liabilities.
Detailed explanation-3: -One difference between common stock asset or liability is that common stock is not an asset nor a liability. Instead, it represents equity, which establishes an individual’s ownership in a company. A liability is an obligation consisting of an amount owed to another individual.
Detailed explanation-4: -Recorded on the right side of the balance sheet, liabilities include loans, accounts payable, mortgages, deferred revenues, bonds, warranties, and accrued expenses.
There is 1 question to complete.