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

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To determine which statement is false, let's analyze each one:

1. **Accounts Receivable is an Asset**: This statement is true. Accounts Receivable represents money owed to a company by its customers for goods or services delivered but not yet paid for, and it is classified as a current asset on the balance sheet.

2. **Retained Earnings is an Owners Equity**: This statement is true. Retained Earnings represent the cumulative amount of net income that has been retained in the company rather than distributed to shareholders as dividends. It is part of the owner's equity section of the balance sheet.

3. **Common Stock is an Asset**: This statement is false. Common Stock represents ownership in a company and is classified as part of owners' equity, not an asset. Assets are resources owned by the company, while common stock reflects the ownership interest of shareholders.

4. **Income Tax Payable is a Liability**: This statement is true. Income Tax Payable represents the amount of income tax that a company owes to the government and is classified as a current liability on the balance sheet.

Based on this analysis, the false statement is:

**Common Stock is an Asset.**
**Common Stock is an Asset** is false.

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

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