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The Following Items Represent a Classification Scheme for a Multistep

Question 162

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The following items represent a classification scheme for a multistep income statement. write the letter for each account to indicate to which category it belongs.

Premises:

Responses:

Personnel Expense

Revenues

Sales Discounts

Selling expenses

Interest Income

General and administrative expenses

Prepaid Rent

Other revenues and expenses

Dividend Income

Cost of goods sold

Rent Expense (for main office)

Not on income statement

Advertising Expense

Depreciation Expense (for delivery truck)

Cash

Unearned Revenue

Premises:

Personnel Expense

Sales Discounts

Interest Income

Prepaid Rent

Dividend Income

Rent Expense (for main office)

Advertising Expense

Depreciation Expense (for delivery truck)

Cash

Unearned Revenue

Responses:

Revenues

Selling expenses

General and administrative expenses

Other revenues and expenses

Cost of goods sold

Not on income statement

Correct Answer:

Premises:

Responses:

Personnel Expense

Sales Discounts

Interest Income

Prepaid Rent

Dividend Income

Rent Expense (for main office)

Advertising Expense

Depreciation Expense (for delivery truck)

Cash

Unearned Revenue