Which of the Following Items Would Appear on the Income

question 90

Multiple Choice

Which of the following items would appear on the income statement?
Common stock……$120,000 Accounts payable…...$25,000
Cash……………….$116,640 Accounts receivable..$22,450
Supplies………… $ 1,500 Office equipment…...$23,300
Prepaid rent……....$ 3,200 Unearned revenue….$ 4,152
Service revenue.....$ 20,000 Utilities expense…....$ 422
Retained earnings...$ 30,000 Shaving equipment…$31,640

• A) Common stock, service revenue, retained earnings, accounts payable, and unearned revenue.
• B) Cash, supplies, prepaid rent, accounts receivable, office equipment, utilities expense, and shaving equipment.
• C) Common stock, cash, supplies, prepaid rent, retained earnings, accounts payable, accounts receivable, office equipment, unearned revenue, and shaving equipment.
• D) Service revenue and utilities expense.
• E) Service revenue, unearned revenue, and utilities expense.

---

Definitions:

Received

Pertains to the act of acquiring or getting something from another party.

Repay

To make a payment back to a lender or party from whom one has borrowed money or to whom one owes money.

Bank Charging

Fees or penalties charged by banks for their services, including account maintenance, ATM usage, and overdrafts.

Loan

A financial agreement in which one party lends money to another, which the borrower agrees to repay with interest over a specified period.