Which account below is not an account of equity? A. Cash. B. Dividends. C. Reserves. D. Retained Earnings.
Question
Which account below is not an account of equity?
A. Cash
B. Dividends
C. Reserves
D. Retained Earnings
Solution
The answer is A. Cash.
Here's the step-by-step explanation:
A. Cash is an asset account, not an equity account. It represents the amount of cash the company has on hand.
B. Dividends is an equity account. It represents the amount of earnings distributed to shareholders.
C. Reserves is an equity account. It represents the portion of earnings that has been set aside for specific purposes.
D. Retained Earnings is an equity account. It represents the amount of earnings that has been retained in the business rather than distributed to shareholders.
Therefore, the correct answer is A. Cash, as it is an asset account, not an equity account.
Similar Questions
Which of the following accounts is a stockholders' equity account?
Which of these is not a part of equity? Group of answer choices 1.General reserve. 2.Retained earnings. 3.Contributed equity. 4.Dividends payable.
he stockholders’ equity section of a balance sheet may contain more than one retained earnings account. This statement is
Which item(s) can be a component of shareholders' equity?Question 8Select one:a.Retained profits.b.Share capital.c.Reserves.d.All of the above.
All of the following are components of stockholders’ equity, except ____________.Multiple Choicenotes payablepaid-in-capitalretained earningstreasury stock
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.