Question

Indicate on which financial statement the following accounts (from the adjusted trial balance) would appear: (A) Sales Revenue; (B) Unearned Rent Revenue; (C) Prepaid Advertising; (D) Advertising Expense; (E) Dividends; (F) Cash.

a) (A) Income Statement; (B) Balance Sheet; (C) Income Statement; (D) Income Statement; (E) Income Statement; (F) Balance Sheet
b) (A) Balance Sheet; (B) Income Statement; (C) Balance Sheet; (D) Income Statement; (E) Balance Sheet; (F) Balance Sheet
c) (A) Income Statement; (B) Income Statement; (C) Balance Sheet; (D) Income Statement; (E) Balance Sheet; (F) Income Statement
d) (A) Balance Sheet; (B) Balance Sheet; (C) Income Statement; (D) Balance Sheet; (E) Income Statement; (F) Balance Sheet

Answer 1

The accounts (A) Sales Revenue, (B) Unearned Rent Revenue, (C) Prepaid Advertising, (D) Advertising Expense, (E) Dividends, and (F) Cash would appear on the financial statements as follows: (A) Income Statement; (B) Balance Sheet; (C) Income Statement; (D) Income Statement; (E) Income Statement; (F) Balance Sheet.

Step-by-step explanation:

The correct answer is option d) (A) Balance Sheet; (B) Balance Sheet; (C) Income Statement; (D) Balance Sheet; (E) Income Statement; (F) Balance Sheet.

(A) Sales Revenue and (D) Advertising Expense would appear on the Income Statement, as they are accounts related to revenue and expenses.

(B) Unearned Rent Revenue and (C) Prepaid Advertising would appear on the Balance Sheet since they are accounts associated with liabilities and assets that will be realized in the future.

(E) Dividends would appear on the Income Statement as a deduction from the Retained Earnings or Net Income.

(F) Cash would appear on the Balance Sheet as it is an asset account.