Question

hedenit Version )dace Word 2. Use the abbreviations below to classify the following income statement items.(17 points R E x Revenues Expenses Item generally not appearing on an income statement Income Statement Items Example Corporation, Inc. For the year ended December 31, Year 1 Accounts payable Sales Dividends paid Cost of goods sold Cash from operating activities Supplies inventory Commissions earned by sales staff Common stock Yearly depreciation on equipment Administrative office space rent on a month-to-month lease Sales from services Sales from products a. b. c. e. k. L. Im. e payable, due in March, Year 1 Note receivable, due June 1, Year 2 Acquisition of common stock Retained eamings Officer salaries 9.

Answer 1

Here the question is about items to be appeared in an income statement. There is a quite difference between income statement and financial statements . Financial statements include income statement and other financial information such as cash flows statement,notes to accounts etc.,

As mentioned above classification of items into revenue and expenses depends on their nature

Revenues are classifieds of income generating activities

Where as expenses are justified to their name

REVENUES

b,k,l

EXPENSES

c,g,I,j,q

Exception to these items remaining items does not appear in INCOME STATEMENT as they are not related to any activity of revenue generation or expenses as already mentioned in the beginning.

Them may form part of balance sheet or notes to accounts etc.,