The Following Lettered Items Represent a Classification Scheme for a Multistep

question 108

Essay

The following lettered items represent a classification scheme for a multistep income statement. In the blank next to each account, write the letter indicating to which category it belongs.
a. Revenues
b. Cost of goods sold
c. Selling expenses
d. General and administrative expenses
e. Other revenues and expenses
f. Not on income statement
_____ 1. Depreciation Expense (for delivery
truck)
_____ 2. Dividend Income
_____ 3. Cash
_____ 4. Interest Income
_____ 5. Prepaid Rent
_____ 6. Rent Expense (for main office)
_____ 7. Advertising Expense
_____ 8. Personnel Expense
_____ 9. Unearned Revenue
_____ 10. Sales Discounts

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Definitions:

Environmental Force

External factors that affect an organization’s performance, including socio-cultural, technological, economic, environmental, and political-legal influences.

Administrative

Pertains to the activities related to the management and execution of the policies and operations of an organization, ensuring smooth and efficient processes.

Technological

Relating to or involving technology, especially in regard to its development, usage, and impact on society.

Marketing Mix

A framework consisting of the four Ps (product, price, place, and promotion) that marketers adjust to meet the needs of their target market.