An example of an item which is not a liability is
A) dividends payable in stock.
B) advances from customers on contracts.
C) accrued estimated warranty costs.
D) the portion of long-term debt due within one year.

Question

Quizplus · Accepted Answer

Dividends payable in stock represent a distribution of additional shares to shareholders and do not constitute a liability because they do not involve the outflow of assets or financial resources from the company.

An Example of an Item Which Is Not a Liability