Marilyn Provides Piano Lessons to Students in Her Home Four

question 62

Multiple Choice

Marilyn provides piano lessons to students in her home four days a week. The money she earns from providing these services would be called ____ on an income statement.

• A) expenses
• B) cash
• C) revenues
• D) retained earnings
• E) equity

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Definitions:

Amortization Expense

The portion of the cost of an intangible asset that is allocated as an expense over its useful life.

Accrued Expenses

Expenses that have been incurred but not yet paid or recorded through the normal accounting process.

Net Income

The total profit or loss of a business after all expenses, including taxes and operating costs, have been deducted from revenues.

Prepaid Expenses

Costs paid in advance for goods or services to be received in the future, treated as assets on the balance sheet.