Indicate for Each of the Following Items If the Item

question 68

Essay

Indicate for each of the following items if the item would be reported on the income statement (IS), statement of changes in equity (CE), balance sheet (BS), or statement of cash flows (CF). Some items may appear on more than one statement, if so, identify all applicable statements.
1) Prepaid insurance
2) Dividends paid to stockholders
3) Interest revenue
4) Accounts payable
5) Salaries expense
6) Retained earnings
7) Unearned subscription revenue
8) Cash flows from operating activities
9) Beginning common stock
10) Issued stock to investors for cash
11) Salaries payable
12) Accounts receivable

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Definitions:

Collateral

An asset that a borrower offers to a lender as a security for a loan, which can be seized if the loan is not repaid.

Savings Deposits

Bank accounts that pay interest on the money deposited, meant for saving rather than daily transactions.

Capital Formation

The process of building up a country's stock of real capital, such as buildings, machinery, and equipment, which is used for production.

Economy

The system of production, distribution, and consumption of goods and services within a society.