In Preparing an Income Statement for Yourself, the Wages from Your

question 14

Multiple Choice

In preparing an income statement for yourself, the wages from your job would be shown as

• A) your revenue.
• B) an expense.
• C) an asset.
• D) your owner's equity.

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Definitions:

Cash

A form of liquid asset that represents money in physical form, such as banknotes and coins.

Employer

An entity or individual that hires employees or workers.

Pension Expense

The cost recognized by an employer for maintaining a pension plan for its employees over a period.

Actual Return

The real gain or loss achieved on an investment over a specific period, including interest, dividends, and capital gains.