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The Following Lettered Items Represent a Classification Scheme for a Multistep

Question 151

Matching

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.

Premises:

Responses:

Cash

Not on income statement

Depreciation Expense (for delivery truck)

Selling expenses

Personnel Expense

Revenues

Advertising Expense

Other revenues and expenses

Dividend Income

General and administrative expenses

Sales Discounts

Cost of goods sold

Interest Income

Unearned Revenue

Rent Expense (for main office)

Prepaid Rent

Premises:

Cash

Depreciation Expense (for delivery truck)

Personnel Expense

Advertising Expense

Dividend Income

Sales Discounts

Interest Income

Unearned Revenue

Rent Expense (for main office)

Prepaid Rent

Responses:

Not on income statement

Selling expenses

Revenues

Other revenues and expenses

General and administrative expenses

Cost of goods sold

Correct Answer:

Premises:

Responses:

Cash

Depreciation Expense (for delivery truck)

Personnel Expense

Advertising Expense

Dividend Income

Sales Discounts

Interest Income

Unearned Revenue

Rent Expense (for main office)

Prepaid Rent