Which of the Following Accounts Would Appear in the Income

question 37

Multiple Choice

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

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

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision.

Capital

The financial assets or resources that individuals or companies use to fund their operations and invest in their businesses.

Financial Situation

An individual's or organization's current status in terms of income, expenses, assets, and liabilities, impacting their ability to generate cash flow and meet financial obligations.

Net Present Value

A financial metric that calculates the value of a series of cash flows by discounting them to their present value using a specific rate.