Which of the following accounts would NOT appear on the balance sheet?

• A. Accounts Payable
• B. Common Stock
• C. Cash
• D. Service Revenue

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the purpose of the balance sheet, which is to present a company's financial position at a specific point in time by listing its assets, liabilities, and equity accounts.
2. Step 2: Identify the nature of each account given: Accounts Payable is a liability, Common Stock is part of shareholders' equity, and Cash is an asset. All these accounts represent elements of the balance sheet.
3. Step 3: Recognize that Service Revenue is an income statement account, representing earnings from providing services during a period, and it does not represent an asset, liability, or equity at a point in time.
4. Step 4: Recall that revenue accounts appear on the income statement, not the balance sheet, because they measure performance over a period rather than financial position at a point in time.
5. Step 5: Conclude that Service Revenue would NOT appear on the balance sheet, while the other accounts would.