# 2 chapter 1 hw

Finarciai statements Each of the following items is shown on the financial statements of Exxon Mobil Corporation (ROM): a. Identifyr the financial statement [balance sheet or income statement] in which each item would appear. 1. Accounts payable Balance sheet V v' 2. Cash equivalents Balance sheet V J 3. Crude oil inventory Balance sheet V J 4. Equipment Balance sheet v J 5. Exploration expenses Income statement V v' 6. Income taxes payable Balance sheet V J 7. Investments Balance sheet v J 8. Long—term debt Balance sheet V J 9. Marketable securities Balance sheet V v' 10. Notes and loans payable Balance sheet V J 11. Notes receivable Balance sheet V J 12. Operating expenses Income statement V J 13. Prepaid taxes BEIlEInCE sheet v v' 14. Sales Income statement v .1 15. Selling expenses Income Statement V J b. Can an item appear on more than one financial statement? Yes v J 1:. Is the accounting eqtatior relevant for Exxon Mobil Corporation? Explain. Yes v J , the accounting equation is v if relevant to all companies. The accounting equation is the basis for all * J accounting systems. Feedback 7 Check My 'M'xk a. Revenues and expenses appear on the income statement, and assets, liabilities, and stockholders equity appear on the balance sheet. b. Examine all four financial reports to determine whether any of the items are shown in more than one report. 1:. The accounting equation indicates the relationship between the resources owned by the company and the claims of creditors and stockholders.