Indicate Whether the Following Items Would Appear on the Statement

question 114

Essay

Indicate whether the following items would appear on the statement of financial position (FP), income statement (IS), or retained earnings statement (RE).
1. Advertising expense
2. Accounts receivable
3. Dividends
4. Rent revenue
5. Salaries and wages payable
6. Supplies

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Definitions:

Interest Income

Earnings received from deposit or investment accounts, such as savings accounts, bonds, or loans.

Taxable Income

Income on which tax must be paid; total income minus exemptions and deductions.

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (taxable income or spending), expressing the percentage of income that goes to taxes.

Depreciable Equipment

Tangible assets used in operations that lose value over time due to wear and tear, which can be written off as an expense for tax purposes over its useful life.