Question

Use the following account numbers and corresponding account titles to answer the following question. Account Number Account Title (1) Cash (2) Merchandise inventory (3) Cost of goods sold (4) Transportation-out (5) Dividends (6) Common stock (7) Selling expense (8) Loss on the sale of land (9) Sales revenue Which accounts would affect the amount of net income shown on the income statement?

Answer 1

The accounts that would affect the net income in the income statement are:

• (2) Merchandise inventory.
• (3) Cost of goods sold.
• (4) Transportation-out.
• (7) Selling expense.
• (8) Loss on the sale of land.
• (9) Sales revenue.

Which items affect net income?

The ending and beginning merchandise inventory play a role in the cost of goods sold which is deducted from net income.

Selling expenses such as transportation-out are also deducted as well as the loss on sale of land. Sales revenue is added to net income.

Find out more on accounts in the income statement at brainly.com/question/21851842.

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