Question

Which of the items listed above appear on the income statement?

1) Supplies expense
2) Earned Revenue
3) Accrued salaries expense
4) Retained earnings

Answer 1

Supplies expense, Earned Revenue, and Accrued salaries expense appear on the income statement.

Step-by-step explanation:

The items that appear on the income statement are Supplies expense, Earned Revenue, and Accrued salaries expense.

Supplies expense represents the cost of supplies used up in the production process and is recorded as an expense on the income statement. Earned Revenue represents the revenue earned by the company from its operations, such as sales of products or services. Accrued salaries expense represents the number of salaries owed to employees but not yet paid, and it is recorded as an expense on the income statement.

Retained earnings, on the other hand, is a component of the balance sheet and represents the accumulated profits of the company that have been reinvested back into the business.