Final answer:
The question relates to the balance sheet components for Displays Incorporated, such as supplies, taxes, salaries, and retained earnings, representing a financial snapshot on January 1, 2024.
Step-by-step explanation:
The account balances for Displays Incorporated on January 1, 2024, include various financial categories such as supplies on hand, accrued income taxes, salaries expense, and retained earnings. These categories are typical components of a company's balance sheet, which represents a snapshot of the company's financial position at a specific point in time.
While the supplies on hand represent a current asset, accrued income taxes are a current liability, salaries expense is an item from the income statement impacting equity via retained earnings, and retained earnings is an equity account that reflects the cumulative profits of the company that have been retained and not paid out as dividends. It's crucial to distinguish between elements of a balance sheet like assets and liabilities and those of the income statement to properly understand the financial health and performance of a business.