What is the formula for the income statement? IA. Assets = Liabilities + Owner's Equity B. Revenues - Expenses = Net Income C. Debits = Credits D. Beginning Capital + Net Income - Drawings = Ending Capital 1 1 Which of the following accounts would appear on the income statement? 1 A. Depreciation Expense B. Accumulated Depreciation Equipment C. Supplies D. Prepaid Insurance Which of the followin accounts would be considered a liability? IA. Accounts Receivable B. Johnson Capital C. Unearned Revenue D. Rent Expense 1 Nelson purchases inventory for $3,000 with terms 2/10, n/30. If Nelson pays within the discount period, how much will Nelson pay? IA. $2,700 B. $3,000 C. $3,060 D. $2,940 1 1 Williams determined that $500 of inventory was damaged during a hurricane. The inventory account will be credited, but which account will get debited? IA. Sales B. Cost of Goods Sold C. Miscellaneous Revenue D. Unearned Revenue 1