Kittery Services,Inc

question 139

Multiple Choice

Kittery Services,Inc.purchased computers that are to be used in its consultancy services.Based on the matching principle,the related account that should appear on the income statement for the year ended December 31,2016 is ________.

• A)Depreciation Expense
• B)Service Revenue
• C)Accumulated Depreciation
• D)Equipment Expense

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Definitions:

Stockholders' Equity

Represents the residual interest in the assets of a corporation after deducting liabilities. It typically includes common stock, preferred stock, retained earnings, and treasury stock.

Balance Sheet

A report detailing a corporation's assets, liabilities, and equity of its shareholders at a certain moment.

Liquidity Problems

Situations where an entity faces difficulty in converting assets into cash or meeting its short-term obligations.