Which of the Following Accounts Would Appear in the Income

question 110

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:

Overhead Costs

Indirect costs of running a business that are not directly attributable to a specific product or service, such as rent, utilities, and administrative expenses.

Cost Drivers

Factors that cause the cost of a product or service to change.

Single Plantwide Overhead Rate

A method in cost accounting where a single rate is used to allocate all of a plant's manufacturing overhead costs to its products.

Cost Driver

A factor that causes variations in the cost of an activity or process, influencing the financial performance of a company.