Which one of the following items is not a liability?
A)The portion of long-term debt due within one year
B)Advances from customers on contracts
C)Accrued estimated warranty costs
D)Dividends payable in shares

Question

Quizplus · Accepted Answer

Dividends payable in shares are not considered a liability because they do not represent a future outflow of assets or services; instead, they involve the distribution of additional shares to shareholders, not a cash or asset outflow.

Which One of the Following Items Is Not a Liability