Which of the Following Accounts Would Appear in the Income

question 74

Multiple Choice

Which of the following accounts would appear in the income statement credit column of the worksheet?

• A) Service Revenue
• B) Prepaid Insurance
• C) Unearned Revenue
• D) Depreciation Expense

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Definitions:

Investing Activities

Transactions involving the purchase or sale of long-term assets and other investments not included in cash equivalents.

Net Cash

Remaining cash after taking into account the cash received and spent.

Operating Activities

These are day-to-day actions that a company engages in, which are directly related to its primary operations such as sales, provision of services, and production.

Prepaid Expenses

Costs paid for in advance of receiving the benefit, recorded as assets until used or consumed.