eskimo pie corporation markets a broad range of frozen treats, including its famous eskimo pie ice cream…

eskimo pie corporation markets a broad range of frozen treats, including its famous eskimo pie ice cream bars. the following items were taken from a recent income statement and balance sheet. in each case, identify whether the item would appear on the balance sheet or income statement. a. income tax expense b. inventory c. accounts payable d. retained earnings e. equipment f. sales revenue g. cost of goods sold h. common stock i. accounts receivable j. interest expense

eskimo pie corporation markets a broad range of frozen treats, including its famous eskimo pie ice cream bars. the following items were taken from a recent income statement and balance sheet. in each case, identify whether the item would appear on the balance sheet or income statement. a. income tax expense b. inventory c. accounts payable d. retained earnings e. equipment f. sales revenue g. cost of goods sold h. common stock i. accounts receivable j. interest expense

Answer

Brief Explanations:

  • Income tax expense is an expense related to calculating net - income, so it appears on the income statement.
  • Inventory represents goods held for sale or in the production process, and is an asset, thus it's on the balance sheet.
  • Accounts payable is a liability for amounts owed to suppliers, and is on the balance sheet.
  • Retained earnings is part of shareholders' equity, shown on the balance sheet.
  • Equipment is a long - term asset, appearing on the balance sheet.
  • Sales revenue is an inflow related to the company's core business, shown on the income statement.
  • Cost of goods sold is an expense associated with the sale of inventory, on the income statement.
  • Common stock is part of shareholders' equity, on the balance sheet.
  • Accounts receivable is an asset for amounts owed by customers, on the balance sheet.
  • Interest expense is an expense related to borrowing costs, on the income statement.

Answer:

a. Income statement b. Balance sheet c. Balance sheet d. Balance sheet e. Balance sheet f. Income statement g. Income statement h. Balance sheet i. Balance sheet j. Income statement