Which of the following accounts does not belong in the equity section of a balance sheet?
A) retained earnings
B) paid-in-Surplus
C) long-term debt
D) preferred stock

Question

Quizplus · Accepted Answer

Long-term debt is a liability account, not an equity account. The equity section of a balance sheet includes retained earnings, paid-in surplus, preferred stock, common stock, and any other equity accounts.

Which of the Following Accounts Does Not Belong in the Equity