Question

The following items were drawn from a company's accounting records:

Accounts receivable
Accounts payable
Cash paid to purchase land
Supplies
Supplies expense
Cash collected for service to be provided in the future
Unearned revenue
Prepaid rent
Earned Revenue
Accrued salaries expense
Common stock
Dividends
Cash paid for prepaid rent
Retained earnings
Which of the items listed above appear on the income statement?

A. 5, 7, 9, and 10

B. 5, 8, and 10

C. 5, 9, 10, and 11

D. 5, 9, and 10

Answer 1

Items 5 (Supplies Expense), 9 (Earned Revenue), and 10 (Accrued Salaries Expense) from the list provided appear on the income statement. The correct answer is option D.

Step-by-step explanation:

The items that appear on the income statement from the list provided are Supplies Expense, Earned Revenue, and Accrued Salaries Expense. These items are related to the revenues and expenses of a company during a specific period. The correct answer is, therefore, option D: 5, 9, and 10.