Which One is False? Accounts Receivable is an Asset Retained Earnings is an Owners Equity Common Stock is an Asset Income Tax Payable is a Liability

Common Stock is an Asset. In reality, common stock is classified as part of shareholders' equity on the balance sheet. It's basically a way for companies to represent ownership stakes, but it doesn't hold the same nature as an asset, which consists of resources owned by the company. So, when you're reviewing financial statements, remember that assets are what the company owns, liabilities are what it owes, and shareholders’ equity reflects the owners' claim after debts are settled. Understanding this distinction can help you navigate the financial waters more easily!