Match each element with its financial statement by entering the appropriate letter in the space provided.

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Mark each item in the following list as an asset (A), liability (L), or stockholders' equity (SE) that would appear on the balance sheet or a revenue (R) or expense (E) that would appear on the income statement.

______ (1) Retained earnings

______ (2) Accounts receivable

______ (3) Sales revenue

______ (4) Property, plant, and equipment

______ (5) Cost of goods sold expense

______ (6) Inventories

______ (7) Interest expense

______ (8) Accounts payable

______ (9) Land

M1-2
Matching Financial Statement Items to Financial Statement Categories
LO1

The following is a list of important abbreviations used in the chapter. These abbreviations also are used widely in business. For each abbreviation, give the full designation. The first one is an example.

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M1-3