Considering the following terms: 1.expenses; 2. tax; 3. accumulated depreciation; 4. retained earnings; 5. prepaid expenses; 6. common stock; 7. interest expenses; 8. overhead; 9. net income; 10. depreciation expense.

Group the items into two major categories, those on the income statement _______

and those on the balance sheet ________ . Answer by indicating the numbered items that belong in each group.