Question

Indicate whether the following items would appear on the income statement, balance sheet, or retained earnings statement. (a) Notes payable select an option (b) Advertising expense select an option (c) Common stock select an option (d) Cash select an option (e) Service revenue

Answer 1

Answer:

income statement

Service revenue

Advertising expense

balance sheet

Notes payable

Common stock

Cash

retained earnings statement.

Nill

Explanation:

The Income Statement records Incomes and Expenses. It is used to calculate the Profit earned during the reporting period.

The Balance sheet records Assets, Liabilities and Owners Equity. The Balance Sheet uses Accounting equation : Assets = Liabilities + Owners Equity.

The Retained Earnings records the Opening and Closing Retained Earnings Balances, Profit for the Year and Dividends Paid. It is used to determine the Balance at the end of the year in Profits attributable to Owners