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:

Price Ceiling

A government-imposed limit on the price charged for a product, aimed at preventing prices from rising above a certain level.

Equilibrium Wage

The earnings rate at which the workforce offered balances the workforce demanded.

Binding

In economic terms, refers to a price floor or ceiling that is enforced and has an effect on the market, preventing it from reaching equilibrium.

Price Ceiling

A legally established maximum price for a good or service, aimed at preventing prices from rising too high.