Indicate in the Space Provided by Each Item Whether It

question 19

Essay

Indicate in the space provided by each item whether it would appear on the Income Statement (IS), Balance Sheet (BS), or Owner's Equity Statement (OE): $$\begin{array}{ll}a.\_\_\_\_ \quad\text { Service revenue}&g.\_\_\_\_ \quad\text { Accounts receivable}\\b.\_\_\_\_ \quad\text { Utilities expense}&h.\_\_\_\_ \quad\text { Owner's capital (ending)}\\c.\_\_\_\_ \quad\text {Cash }&i.\_\_\_\_ \quad\text {Equipment }\\d.\_\_\_\_ \quad\text { Accounts payable}&j.\_\_\_\_ \quad\text { Advertising expense}\\e.\_\_\_\_ \quad\text {Supplies }&k.\_\_\_\_ \quad\text {Owner's drawing }\\f.\_\_\_\_ \quad\text { Salaries and wages expense}&l.\_\_\_\_ \quad\text {Notes payable }\\\end{array}$$

---

Definitions:

Maximum Capacity

The highest level of output that a company can sustain within a given period without compromising product quality or operational efficiency.

External Financing

Obtaining funds from outside sources, such as loans, stock issues, or bonds, to finance business operations or investments.

Production Capacity

The maximum amount of goods or services that a manufacturing facility can produce over a given period under normal conditions.

External Financing

Funds raised from outside the company, typically through borrowing or selling equity.