Which of the Following Accounts Would Appear in the Income

question 72

Multiple Choice

Which of the following accounts would appear in the Income statement credit column?

• A)Prepaid insurance
• B)Depreciation expense
• C)Service revenue
• D)Unearned service revenue

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Definitions:

Salvage Value

The estimated resale value of an asset at the end of its useful life, often used in depreciation calculations.

Scrap Value

The anticipated value of an asset when it reaches the end of its functional lifespan, commonly utilized in figuring out depreciation.

Units-Of-Activity Method

A method of depreciation that provides for depreciation expense based on each unit of activity of a fixed asset.

Depreciable Cost

The total cost of a tangible asset minus its estimated salvage value, representing the amount subject to depreciation over the asset's useful life.