How Many of the Following Items Are Found on the Balance

question 61

Multiple Choice

How many of the following items are found on the balance sheet, rather than the income statement?
• Accounts receivable
• Retained earnings
• Income tax expense
• Accrued expenses
• Cash
• Selling and administrative expenses
• Plant and equipment
• Operating expense
• Marketable securities
• Interest expense

• A)Three of these items are found on the balance sheet.
• B)Four of these items are found on the balance sheet.
• C)Five of these items are found on the balance sheet.
• D)Six of these items are found on the balance sheet.

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Definitions:

Cash

Currency and other liquid instruments such as checks and bank deposits that are readily available for use in transactions and other immediate needs.

Normal Credit Balance

The expected balance type for certain accounts in the general ledger, such as liabilities, equity, and revenue accounts.

Revenue

The income a company generates from its business activities, typically from the sale of goods and services to customers.

Liabilities

Economic obligations or debts that a business owes to external parties, which must be settled over time through the transfer of economic benefits.