Which Of The Following Are Not Expense Accounts? (Check All That Apply.)

The correct options of this multiple choice question are D and H, as Accrued Expenses or Expenses Owing are current liabilities which shows those Expenses (Exp.) which are incurred by the business but the payment is still not paid. So, the business is liable to pay for the benefits or services received. Accrued expenses are shown on liabilities & equity side on balance sheet under current liabilities heading. When the company paid the full payment, accrued expenses are closed and it will no longer to be shown on balance sheet.

Dividend is not an expense for the business as it is not used for conducting or operating the daily business activities. It is paid out of the profits which the business earned during the period. It is a share of return of the investments of shareholders who invested in the business, so it is a Contra Equity Account. Once announced in Annual General Meeting (AGM), the company is liable to pay to its shareholders. It is shown in the statement of retained earnings and deducted from retained earnings to find the balance of closing retained earnings.

The option A is incorrect choice as advertising exp. is used to promote the business which is helpful in carrying out the business activities i.e., more customers can buy products or services of the company which can increase in Sales of the business.

The option B is also not correct option as rent exp. is incurred to carry on the business running on office building.

The option C is also a wrong choice here as repair exp. incurred for making the fixed assets in their usable condition without adding further improvements i.e., to make the performance better of equipment, machinery, etc. The machinery, equipment etc., are used to carry on the business activities.

The option E is wrong choice here as stationary exp. include paper, pen, ink, etc., used to run office work. It is a part of office supplies.

The option F is incorrect as office supplies used is an expense account while unused office supplies are current assets for the business.

The option G is also not correct as depreciation exp. is the estimated cost of fixed assets (over their useful life) used in the business operations.

The option I is also not correct as salaries exp. paid to employees to run the daily activities of the business.