Which of the Following Accounts Would Appear in the Income

question 91

Multiple Choice

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

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

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Definitions:

Consumer Surplus

The gap between what consumers are prepared to spend on a good or service and the actual amount they end up paying.

Consumer Surplus

The divergence in total intended consumer expenditure on a product or service and the total actual expenditure.

Market Power

The ability of a company or entity to influence or control the terms and conditions of the market to some degree, affecting prices and competition.

Externalities

Financial consequences for unrelated third parties, which can manifest as either positive or negative effects.