Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 1 - Introduction to Financial Statements - Questions: 8

Answer

Service revenue appears in The Income Statement. Equipment appears in The Balance Sheet. Advertising expense appears in The Income Statement. Accounts receivables appear on The Balance Sheet. Common Stock appears in The Balance Sheet. Interest Payable appears on The Balance Sheet.

Work Step by Step

Service Revenue is a form of income, and thus appears in The Income Statement. Equipment is a fixed asset and thus appears in The Balance Sheet. Advertising expense is an expense and thus appears in The Income Statement. Accounts receivables are an asset and thus appear on The Balance Sheet. Common Stock is a type of asset and thus appears in The Balance Sheet. Interest Payable is a liability and will appear on The Balance Sheet.
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