Match the balance sheet account with the income statement account that is typically audited at the same time.
-Investments
A)Depreciation expense
B)Insurance expense
C)Investment income
D)Interest expense
E)Bad debt expense

Question

Quizplus · Accepted Answer

Investment income typically correlates with investments on the balance sheet and is audited at the same time.

Answer: A 
 Depreciation expense typically correlates with property, plant, and equipment on the balance sheet and is audited at the same time.

Answer: D 
 Interest expense typically correlates with loans and other interest-bearing liabilities on the balance sheet and is audited at the same time.

Answer: E 
 Bad debt expense typically correlates with accounts receivable on the balance sheet and is audited at the same time.

Answer: B 
 Insurance expense can vary and may or may not correlate with a specific balance sheet account, so it may not be audited at the same time as a specific balance sheet account.

Match the Balance Sheet Account with the Income Statement Account