Which of the following sets of accounts would be reported on a company’s income statement for the period?

• A. Service Revenue, Salaries Expense, and Rent Expense
• B. Cash, Accounts Receivable, and Supplies
• C. Accounts Payable, Unearned Revenue, and Notes Payable
• D. Common Stock, Retained Earnings, and Dividends

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the purpose of the income statement. The income statement reports a company's revenues and expenses over a specific period, showing the company's profitability.
2. Step 2: Identify which accounts represent revenues and expenses. Revenues increase equity through earnings, and expenses decrease equity through costs incurred.
3. Step 3: Review the given account sets and classify each account as either revenue, expense, asset, liability, or equity.
4. Step 4: Recognize that Service Revenue is a revenue account, while Salaries Expense and Rent Expense are expense accounts. These are the types of accounts reported on the income statement.
5. Step 5: Understand that Cash, Accounts Receivable, and Supplies are asset accounts; Accounts Payable, Unearned Revenue, and Notes Payable are liability accounts; and Common Stock, Retained Earnings, and Dividends are equity accounts. These accounts are reported on the balance sheet, not the income statement.