Which of the Following Accounts Would Appear in the Income

question 136

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:

Proprietor Form

A business structure owned by a single individual, where the owner and the business are legally the same entity.

Double Taxation

The imposition of taxes on the same income, asset, or financial transaction at two different levels of government, often seen in the taxation of corporate profits and then again when dividends are paid to shareholders.

Limited Liability

An advantage of the corporate form. Stockholder liability for the actions of a company is limited to the value of the stock. That is, a suit against the corporation cannot be made against a stockholder simply because the stockholder is an owner.

Proprietorships

A type of business entity that is owned and operated by a single individual, without any legal distinction between the owner and the business.