Question
Which of the following should appear in the income statement? Plant and Machinery Property, plant and equipment Mortgage Trade receivables Motor vehicles Bank loan Salaries and wages Trade payables
Answer
4.6
(240 Votes)
Megan
Elite · Tutor for 8 years
Answer
Salaries and wages.
Explanation
## Step1:Identify the items that commonly appear in an income statement. The core components of an income statement or a profit and loss account are revenues, direct costs, gross profit, operating expenses, net income or loss._Salaries and wages_ is the only item from the options given that goes in the income statement.Deserves a brief explanation about each selected option:'Plant and Machinery' and 'Property, plant and equipment' are fixed assets in nature usually appears under non-current assets in balance sheet. 'Mortgage' and a 'Bank loan' and are non-current liability which also appears in the balance sheet but does not make part of the income statement.'Trade receivables' is current assets while 'Trade payables' is current liability, and both are featured in the balance sheet not in the profit and loss account.'Motor vehicles' is also a fixed asset that is usually accounted for on the balance sheet.