An example of an item that 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 represent an outflow of assets or services.

An Example of an Item That Is Not a Liability