Chapter 1, Problem 1.2E

Matching Financial Statement Items to Financial Statement Categories

According to its annual report, P&G’s billion-dollar brands include Pampers, Tide, Ariel, Always, Pantene, Bounty, Charmin, Downy, Olay, Crest, Vicks, Gillette, Duracell, and others. The following are items taken from its recent balance sheet and income statement. Note that different companies use slightly different titles for the same item. Mark each item in the following list as an asset (A), liability (L) or stockholders’ equity (SE) item that would appear on the balance sheet or a revenue (R) or expense (K) item that would appear on the income statement.

____ (1) Accounts receivable	____ (9) Income taxes
____ (2) Cash and cash equivalents	____ (10) Accounts payable
____ (3) Net safes	____ (11) Trademarks and other intangible assets
____ (4) Debt due within one year	____ (12) Property, plant, and equipment
____ (5) Taxes payable	____ (13) Long-term debt
____ (6) Retained earnings	____ (14) Inventories
____ (7) Cost of products sold	____ (15) Interest expense
____ (8) Selling, general, and administrative expense