Which of the Following Accounts Would Appear in the Income

question 64

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:

Catering Department

A division within a company or organization responsible for providing food services for events, meetings, or facilities.

Restaurant

A business establishment that prepares and serves meals, snacks, and beverages to customers.

Departmental Gross Profit

The difference between sales and the cost of goods sold for a specific department, highlighting its profitability.

Revenue

An amount earned by performing services for customers or selling goods to customers; it can be in the form of cash or accounts receivable. A subdivision of owner’s equity: As revenue increases, owner’s equity increases.