Using the classification scheme below for a multistep income statement, match each account in the image attached with the letter of the category in which it belongs. **Exercise E2B: Classification of Accounts in a Multistep Income Statement**Using the classification scheme below for a multistep income statement, match each account with the letter of the category to which it belongs.Categories:- a. Net sales- b. Cost of sales- c. Selling expenses- d. General and administrative expenses- e. Other revenues and expenses- f. Not on income statementAccounts:1. Sales Discounts2. Cost of Goods Sold3. Dividend Income4. Advertising Expense5. Office Salaries Expense6. Freight Out Expense7. Prepaid Insurance8. Utilities Expense9. Sales Salaries Expense10. Rent Expense11. Depreciation Expense—Delivery Equipment12. Interest Expense**Instructions:**Match each of the listed accounts with the appropriate category letter denoted above. This exercise is designed to enhance your understanding of how different financial accounts are classified within a multistep income statement.

A Multi-step Income statement is Profit and Loss account in which Revenue and Expense items are…

E2B. Using the classification scheme below for a multistep income statement, match cach account with the letter of the category in which it belongs. a. Net sales 1. Sales Discounts 2. Cost of Goods Sold b. Cost of sales c. Selling expenses d. General and administrative expenses c. Other revenues and expenses f. Not on income statement 3. Dividend Income 4. Advertising Expense 5. Office Salaries Expense 6. Freight Out Expense 7. Prepaid Insurance 8. Utilities Expense 9. Sales Salaries Expense 10. Rent Expense 11. Depreciation Expense-Delivery Equipment 12. Interest Expecnse

E2B. Using the classification scheme below for a multistep income statement, match cach account with the letter of the category in which it belongs. a. Net sales 1. Sales Discounts 2. Cost of Goods Sold b. Cost of sales c. Selling expenses d. General and administrative expenses c. Other revenues and expenses f. Not on income statement 3. Dividend Income 4. Advertising Expense 5. Office Salaries Expense 6. Freight Out Expense 7. Prepaid Insurance 8. Utilities Expense 9. Sales Salaries Expense 10. Rent Expense 11. Depreciation Expense-Delivery Equipment 12. Interest Expecnse

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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Using the classification scheme below for a multistep income statement, match each account in the image attached with the letter of the category in which it belongs.

**Exercise E2B: Classification of Accounts in a Multistep Income Statement**

Using the classification scheme below for a multistep income statement, match each account with the letter of the category to which it belongs.

Categories:
- a. Net sales
- b. Cost of sales
- c. Selling expenses
- d. General and administrative expenses
- e. Other revenues and expenses
- f. Not on income statement

Accounts:
1. Sales Discounts
2. Cost of Goods Sold
3. Dividend Income
4. Advertising Expense
5. Office Salaries Expense
6. Freight Out Expense
7. Prepaid Insurance
8. Utilities Expense
9. Sales Salaries Expense
10. Rent Expense
11. Depreciation Expense—Delivery Equipment
12. Interest Expense

**Instructions:**
Match each of the listed accounts with the appropriate category letter denoted above. This exercise is designed to enhance your understanding of how different financial accounts are classified within a multistep income statement.

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