Which of the following is a true statement? (Note: A statement may be true even if it does not identify all accounts that appear on that particular financial statement.)
A)Account numbers 2, 4, and 5 will appear on the income statement.
B)Account numbers 1, 3, and 8 will appear on the balance sheet.
C)Account numbers 2, 5, and 8 will appear on the statement of cash flows.
D)Account numbers 4, 5, and 6 will appear on the statement of changes in stockholders' equity.

Question

Which of the following is a true statement? (Note: A statement may be true even if it does not identify all accounts that appear on that particular financial statement.)
A)Account numbers 2, 4, and 5 will appear on the income statement. 
B)Account numbers 1, 3, and 8 will appear on the balance sheet. 
C)Account numbers 2, 5, and 8 will appear on the statement of cash flows. 
D)Account numbers 4, 5, and 6 will appear on the statement of changes in stockholders' equity.

Quizplus · Accepted Answer

Account numbers 1, 3, and 8 are the only ones that will appear on the balance sheet, based on their nature as assets, liabilities, and equity. The income statement includes revenues, expenses, gains, and losses, which could be any combination of accounts, so choice A cannot be determined. The statement of cash flows includes operating, investing, and financing activities, which may involve any number of accounts, so choice C cannot be determined. The statement of changes in stockholders' equity includes changes in common stock, preferred stock, additional paid-in capital, retained earnings, and other comprehensive income, which do not correspond with account numbers 4, 5, and 6 specifically, so choice D cannot be determined.

Which of the Following Is a True Statement? (Note: a Statement