Question 51 Consider the following typical accounts and...

Question 51 Consider the following typical accounts and statement items and indicate on which statement(s)—income statement, statement of financial position, statement of changes in equity, and/or statement of cash flows— you would find each of the accounts or items. 1. Sales 2. Cash 3. Cash provided by operating activities 4. Service revenue 5. Common shares 6. Dividends declared 7. Net income 8. Accounts receivable 9. Inventory 10. Income tax expense 11. Interest expense 12. Cash used by investing activities 13. Equipment 14. Retained earnings 15. Bank loan payable

Transcript

00:01 In this question, we are required to make the list of accounts and the financial statements where you could find them.

00:09 So, the first is sales.

00:12 We can find sales in income statement.

00:16 This is because sales represent revenue and are typically found on the income statement as part of total revenue or sales revenue.

00:26 Second account is cash.

00:27 We can find cash in the statement of financial position and statement of cash flow.

00:34 This is because cash is shown under current assets in statement in financial position and in cash flow as beginning and ending cash.

00:45 Third is cash provided by operating account.

00:49 So, this one we could find in statement of cash flow.

00:55 Why? because this item is reported on the statement of cash flow specifically under the operating activity section as a positive cash flow.

01:06 Next item is service revenue.

01:11 Service revenue could be found in income statement because service revenue is a type of revenue and is reported on the income statement as part of total revenue or service revenue.

01:29 We could find common shares in statement of financial position balance sheet.

01:38 This is because common shares are reported on the statement of financial position as part of shareholders equity section.

01:48 Next is dividend declares which we can find in statement of changes in equity.

01:55 Dividends declared are typically reported on statement of changes in equity specifically under the section that shows changes in retained earnings.

02:05 Next is net income...

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