Classify the Following Items According to the Financial Statement on Which

question 33

Essay

Classify the following items according to the financial statement on which each belongs, either the income statement (IS) or the balance sheet (BS).Also indicate whether each is a revenue (R), expense (E), asset (A), liability (L), or owners' equity (OE) item. $$\begin{array}{llcc}&&\text { Appears on Which Statement?}&\text {Type of Account }\\\\1.& \text {Retained earnings }&\_\_\_\_\_\_&\_\_\_\_\_\_\\2.& \text { Buildings}&\_\_\_\_\_\_&\_\_\_\_\_\_\\3.& \text {Common stock }&\_\_\_\_\_\_&\_\_\_\_\_\_\\4.& \text { Accounts payable}&\_\_\_\_\_\_&\_\_\_\_\_\_\\5.& \text {Football ticket sales }&\_\_\_\_\_\_&\_\_\_\_\_\_\\6.& \text {Salaries expense }&\_\_\_\_\_\_&\_\_\_\_\_\_\\7.& \text {Accounts receivable }&\_\_\_\_\_\_&\_\_\_\_\_\_\\\end{array}$$

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Definitions:

Initial Outlays

The initial investments required to start a project or purchase an asset, often including costs such as capital expenditure and working capital.

Revenue Forecasts

Predictions about the amount of money a company is expected to generate in future periods through sales or other income.

Large Projects

Significant endeavors undertaken by businesses or governments, characterized by large investment, significant complexities, and long durations, often involving infrastructure or technology.

Accounting Income

Accounting income is the net profit of a company, calculated according to generally accepted accounting principles (GAAP), and includes all revenues and expenses.