Financial statements OBJ. 5 Each of the following items is shown in the financial statements of Exxon Mobil Corporation:

1. Accounts payable 2. Cash equivalents 3. Crude oil inventory 4. Equipment 5. Exploration expenses 6. Income taxes payable 7. Investments 8. Long-term debt 9. Marketable securities 10. Notes and loans payable 11. Notes receivable 12. Operating expenses 13. Prepaid taxes 14. Sales 15. Selling expenses

a. Identify the financial statement (balance sheet or income statement) in which each item would appear.

b. Can an item appear on more than one financial statement?

c. Is the accounting equation relevant for Exxon Mobil Corporation?