Directions
In Part I, next
to each item listed, you will identify which statement the item would appear. You
will need to determine whether itwould appear on the income statement (I), balance
sheet (B), or statement of cash
flows (CF). Then, for each group,
explain the difference among the items listed. Finally, in Part II, discuss the
relationship between the three financial statements.
Part I
Set 1:
_____ Inventory, ending balance
_____ Cost of goods (inventory) sold during the
period
_____ Cash paid to suppliers during the period
_____ Accounts payable, ending balance
Difference:
Set 2:
_____ Accounts receivable, ending balance
_____ Cash received from customers
_____ Sales
Difference:
Set 3:
_____ Wage expense for the period
_____ Wages payable, ending balance
_____ Cash paid for wages during the period
Difference:
Set 4:
_____ Property, plant, and equipment, ending balance
_____ Cash paid for property, plant, and equipment
during the period
_____ Cash received from selling property, plant,
and equipment during the period
_____ Depreciation
expense during the period (expense of using property, plant, and equipment
during the period)
Difference:
Set 5:
_____ Notes
payable, ending balance
_____ Cash
received from borrowing money during the period
_____ Cash
used to pay off notes payable during the period
_____ Interest
expense during the period (expense of using borrowed money during the period)
Difference:
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Part II
Discuss the
Relationship between the financial statements identified:
