Classifi cation of Financial Statement Items Classify each of the following items according to (1) whether it belongs on the income statement (IS) or balance sheet (BS) and (2) whether it is a revenue (R), expense (E), asset (A), liability (L), or stockholders’ equity (SE) item.

Item Appears on the Classifi ed as Example: Cash BS A 1. Salaries expense ___________ ___________ 2. Equipment ___________ ___________ 3. Accounts payable ___________ ___________ 4. Membership fees earned ___________ ___________ 5. Capital stock ___________ ___________ 6. Accounts receivable ___________ ___________ 7. Buildings ___________ ___________ 8. Advertising expense ___________ ___________ 9. Retained earnings ___________ ___________ AppendixLO1