Which of the following are classified as equity accounts on a balance sheet?I. goodwill
II. paid in capital
III. net income
IV. retained earnings
A)IV only
B)I and III only
C)II and IV only
D)I, II, and IV only
E)II, III, and IV only

Question

Quizplus · Accepted Answer

Goodwill is considered an intangible asset and is not an equity account. Paid in capital and retained earnings are both equity accounts that represent the funds invested by shareholders. Net income is not an equity account but rather an income statement account that shows a company's profitability for a given period.

Which of the Following Are Classified as Equity Accounts on a Balance