Classify the Following Items According to the Financial Statement on Which

question 70

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.
$\begin{array}{ll}&\text { Appears on Which Statement? }&\text { Type of Account }\\\text { 1. Retained eamings}&\_\_\_\_&\_\_\_\_\\\text {2. Buildings }&\_\_\_\_&\_\_\_\_\\\text {3. Common stock }&\_\_\_\_&\_\_\_\_\\\text { 4. Accounts payable}&\_\_\_\_&\_\_\_\_\\\text { 5. Football ticket sales}&\_\_\_\_&\_\_\_\_\\\text {6. Salaries expense }&\_\_\_\_&\_\_\_\_\\\text {7. Accounts receivable }&\_\_\_\_&\_\_\_\_\\\end{array}$

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Definitions:

Operating Income

Earnings from a company's core business operations, excluding expenses and revenues from non-operating activities.

Fixed Overhead

The set costs associated with operating a business that does not change in relation to production volume, such as rent, salaries, and insurance.

Administrative Costs

Expenses related to the general operations of a business, such as office supplies, management salaries, and utilities, which do not directly tie to specific product or service production.

Variable Manufacturing Costs

Costs that vary directly with the level of production, such as raw materials, direct labor, and certain overhead expenses.