Question

Karl Flury operates a golf driving range. For each of the following financial items related to his business, indicate the financial statement (or statements) in which the item would be reported.

Answer 1

The financial items related to Karl Flury's golf driving range would be reported on the income statement and balance sheet. Revenue and expenses are reported on the income statement, while assets and liabilities are reported on the balance sheet.

Step-by-step explanation:

The financial items related to Karl Flury's golf driving range would be reported in the financial statements as follows:

1. Revenue: Revenue from the golf driving range, such as fees from customers, would be reported on the income statement. It represents the income generated by the business.
2. Expenses: Expenses incurred in operating the golf driving range, such as rent, utilities, and maintenance, would also be reported on the income statement. These expenses are deducted from the revenue to calculate the net income or loss.
3. Assets: Assets owned by Karl Flury's business, such as land, buildings, and golf equipment, would be reported on the balance sheet. These assets represent the resources owned by the business.
4. Liabilities: Liabilities of the business, such as loans or debts, would also be reported on the balance sheet. They represent the obligations and debts of the business.