Which of the Following Accounts Would Appear in the Income

question 83

Multiple Choice

Which of the following accounts would appear in the income statement debit column?

• A)Unearned Revenue
• B)Service Revenue
• C)Depreciation Expense
• D)Prepaid Insurance

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Definitions:

Parent-subsidiary Relationship

A corporate structure where one company (the parent) controls another company (the subsidiary) typically through ownership of a majority of its shares.

Partnership

A formal business enterprise where multiple individuals collaborate in management and profit distribution.

Cost Method

An accounting method where investments are recorded at their original purchase cost, without adjustment for increases or decreases in market value.

Liquidated

Liquidated refers to the process of converting assets into cash, often associated with dissolving a company or selling off its assets to pay off debts.