Which of the following accounts does NOT belong in the liability section of a balance sheet?
A) accruals
B) short-term debt
C) additional paid-in capital
D) long-term debt

Question

Quizplus · Accepted Answer

The accounts listed in the liability section are obligations the company owes to others, such as creditors or lenders. Accruals and short-term debt are both types of short-term liabilities, while long-term debt is a long-term liability. Additional paid-in capital is not a liability, but instead represents the excess amount paid by investors for the company's stock beyond the par value. Therefore, the account that does not belong in the liability section is C) additional paid-in capital.

Which of the Following Accounts Does NOT Belong in the Liability