Final answer:
The income statement includes interest expenses for long-term debt and f) sales, displaying a company's financial performance over a period by reporting on revenues and expenses.
Step-by-step explanation:
Items that belong to the income statement among the options provided are e) interest expenses for long-term debt and f) sales. The income statement is a financial document that outlines a company's revenues and expenses over a specific accounting period, culminating in the net earnings or net loss for the period. This statement includes all types of income and expenses, such as those from sales and interest expenses on debts.
To clarify further, cash and equivalents (a) and inventories (c) are part of the balance sheet under assets. Accounts payable (b) and long-term debt (d) are also on the balance sheet, but under liabilities. Earnings (g) is a general term that could refer to net income, which is indeed the bottom line of an income statement, but it is not a specific item that "belongs" to the statement.
The items that belong to the income statement are:
Sales: Sales represent the revenue generated by a company from its core operations. They are the top line of the income statement.
Interest expenses for long-term debt: This represents the interest paid by the company on its long-term debt, such as loans or bonds.
Earnings: Earnings (also known as net income or profit) represent the bottom line of the income statement and reflect the company's profitability.
The other options mentioned in the question (a) cash and equivalents, b) accounts payable, c) inventories, d) long-term debt) do not belong to the income statement. Cash and equivalents, accounts payable, and inventories are balance sheet items, while long-term debt is also reported in the balance sheet and its interest expense is reported in the income statement.