exercise 3-19A

Exercise 3-19A Determining the impact of events on financial statements Required Indicate whether each of the following statements is true or false: a. The unearned revenue account appears on the income statement. b. Supplies expense appears on the statement of cash flowa. c. Prepaid rent appears on the balance sheet. d. The book value of a long-term asiet appeirs on the statement of changes in stockholden' equity. 8. Depreciation expense appears on the income statement and in the operating activites seetion of the statement of cash flows. t. Accrued salaries payable appears on the balance sheet. g. Net income appears on the income statement and the statement of changen in stockholden' equity. h. Dividends are deferrals because they delay the recognition of expenses. 1. Deprecintion expense reduces net income but has no effect on the statement of cash hows. 1. The amount of accumulated depreciation is added to the corresponding asset account in ofder to determine the book value of the asset. k. A decrease in unearned revenue is normally offset by an incresse in retained earnings. Exercise 3-20A Relationship between depreciation and the financial statements Exercise 3-19A Determining the impact of events on financial statements Required Indicate whether each of the following statements is true or false: a. The unearned revenue account appears on the income statement. b. Supplies expense appears on the statement of eash flows. c. Prepaid rent appears on the balance sheet. 4. The book value of a long-term asset appears on the statement of changes in stockholders' equity. e. Depreciation expense appears on the income statement and in the operating activities section of the statement of cash flows. f. Acerued salaries payable appears on the balance sheet. 8. Net income appears on the income statement and the statement of changes in stockholders' equity. h. Dividends are deferrals because they delay the recognition of expenses. 1. Depreciation expense reduces net income but has no effect on the statement of cash flows. 1. The umount of accumulated depreciation is added to the corresponding asset account in order to determine the book value of the asset. k. A decrease in unearned revenue is normally offset by an increase in retained carnings. Exercise 3-20A Relationship between depreciation and the financial statements