Match each income statement and balance sheet term to its role in their respective statements. Account Receivable Accounts Payable Expenses Revenue Account Receivable Expenses Revenue

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Question

Match each income statement and balance sheet term to its role in their respective statements. Account Receivable Accounts Payable Expenses Revenue Account Receivable Expenses Revenue

Answer 1

Account Receivable: Asset on a balance sheet as it represents money owed to the company Accounts Payable: Liability on a balance sheet as it represents money the company owes to others Expenses: Deducted from revenue on an income statement to determine income before taxes Revenue: Top line figure on an income statement indicating the money received during a specific period.

Answer 2

For this question, it involves matching each term to its respective role on the income statement and balance sheets. Let's define each of these terms: 1. Accounts Receivable: This account represents the amounts owed to the company, usually by its customers for the sale of goods or services rendered. It is found on a balance sheet under assets. 2. Accounts Payable: This is the money owed by a business to its suppliers. It is considered a liability and is listed on a balance sheet. 3. Expenses: These are the costs incurred in the effort to generate revenue, appearing on the income statement. Expenses are deducted from Revenues to arrive at the Interim Income Before Taxes presented on the income statement. 4. Revenue: This term refers to the amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. It is presented at the top of an income statement and often referred to as the “top line” figure.

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Match each income statement and balance sheet term to its role in their respective statements. Account Receivable Accounts Payable Expenses Revenue Account Receivable Expenses Revenue

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