Kittery Services Purchased Computers That Are to Be Used in Its

question 51

Multiple Choice

Kittery Services 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:

Economic Resources

Assets owned by businesses or individuals that have the ability to produce value or generate income in the future.

Balance Sheet

A report showing a business's assets, debts, and owner's equity on a particular date.

Long-Term Liabilities

Company debts that are payable beyond a year from now.

Capital Leases Payable

The liability account that records the present value of future lease payments for assets obtained through capital leases.