Which of the Following Accounts Would Appear in the Income

question 67

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:

Accounts Receivable

Money owed by customers to a company for goods or services provided on credit.

Notes Receivable

A customer’s written promise to pay an amount and possibly interest at an agreed-upon rate.

Allowance Method

The method of accounting for uncollectible accounts that provides an expense for uncollectible receivables in advance of their write-off.

Receivables

All money claims against other entities, including people, business firms, and other organizations.