Chapter 1, Problem 13QS

To determine

Revenue (R): The amount receives in any business activity is called revenue. When seller sales the product to buyer, the buyer will provide some money in exchange, this is revenue to the company. Revenue is the income of the company and shown in the income statement.

Expenses (EX): The expense that occurs during business are called business expenses. To earn a revenue some relevant expenses have to pay. Expense may be operating expenses or non operating expense.

Dividend (D): The dividend is the expense of a company that has to pay to its shareholders. If company earn more profits in a year they provide more dividend to the shareholders. The dividend will appear on the statement of retained earnings.

To identify: Items that are either, revenue (R), expenses (EX), dividend(D).