classification of financial statement items classify each of the following items according to: whether it belongs on the income statement or balance sheet and whether it is a revenue, expense, asset, liability, or stockholders' equity item. item appears on the classified as example: cash balance sheet asset 1. salaries expense 2. equipment 3. accounts payable 4. membership fees earned 5. capital stock 6. accounts receivable 7. buildings 8. advertising expense 9. retained earnings