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

Question

Quizplus · Accepted Answer

Dividends payable in shares are not a liability because they do not require the payment of cash or transfer of assets, but rather the issuance of shares that represent ownership in the company. The other options are all liabilities because they involve a future payment or obligation of the company to another party.

Which One of the Following Items Is Not a Liability