Question

Which financial statement (income statement, balance sheet, or retained earnings statement) would contain each of the following accounts?

a. Rent Revenue
b. Dividends
c. Legal Expenses Payable?

Answer 1

The correct answer is a. Rent Revenue.

Step-by-step explanation:

The account Rent Revenue would be found in the Income Statement. This statement shows the revenue and expenses of a company during a specific period of time.

The account Dividends would be found in the Retained Earnings Statement. This statement shows the changes in a company's retained earnings over a specific period of time.

The account Legal Expenses Payable would be found in the Balance Sheet. This statement shows a company's assets, liabilities, and owners' equity at a specific point in time.