Q1 Circle whether the account is classified as a (Rev)enue, (Exp)ense, or (Not) reported on the income statement.
a. Wage expense (Rev / Exp / Not)
b. Inventory (Rev / Exp / Not)
c. Cost of goods sold (Rev / Exp / Not)
d. Service revenue (Rev / Exp / Not)
e. Rent expense (Rev / Exp / Not)
f. Building (Rev / Exp / Not)
Q2 Review Pepsi Co’s 2010 income statement above and answer the following questions:
a. This company reports (1 / 2 / 3 / 4) revenue account(s) and (2 / 3 / 4 / 5) expense accounts.
b. Beverages and snacks were sold to customers for ________ million that cost the company ________ million to produce.
c. The title of the largest expense account is _________________ reporting _________ million, which is typically the largest expense account for a company within the (_______ / service) industry.
What specific types of costs would be included in this account for PepsiCo?
d. Was Pepsi Co. profitable? (________ / No) How much profit was reported? _______ million
Q3 Net income can also be referred to as (revenues / expenses / common stock / ___________).