Ferg - Exinfm.com Income Statement Accounts L7 (25)

Businesses incur ____________ and generate ____________ from sales to customers.

• expenses, revenues

• expenses, assets

• assets, expenses

• assets, liabilities

Which belong on the Balance Sheet?

• Assets

• Liabilities

• Expenses

• Revenues

Which are on the Income Statement?

• Revenue

• Expenses

• Assets

• Liabilities

Income Statement accounts are considered _______________ – the balances are closed out each reporting period.

• nominal

• normal

• non-existent

• nothing

Balance Sheet accounts always have a balance – they are considered ______________ accounts

• Real

• Relative

• Reasonable

• Really

Which financial statement does the accounting equation align to?

• Balance sheet

• Income statement

• Statement of retained earnings

• Statement of cash flows

All sales are posted to the __________________ account.

• Sales revenue

• Utility payable

• Rent expense

• Equipment

The cost to acquire merchandise for resale or the cost of labor used to make a product.

• Cost of goods sold

• Inventory cost

• Initial cost

• Cost of establishment

When is the Cost of Goods recorded?

• When the item is sold

• When the item is initially purchased

• At the end of the year

• At the end of the month

Marketing and Selling expenses include:

• Advertising

• Sales personnel

• Other costs associated with selling

• The owner's withdrawals