Which of the following accounts is an example of a revenue account?

• A. Accounts Payable
• B. Salaries Expense
• C. Service Revenue
• D. Prepaid Rent

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the concept of a revenue account. Revenue accounts represent income earned by a business from its operations, such as sales or services provided. These accounts are part of the income statement and increase equity.
2. Step 2: Analyze the given options. Accounts Payable is a liability account, representing amounts owed by the business. Salaries Expense is an expense account, representing costs incurred by the business. Prepaid Rent is an asset account, representing payments made in advance for future benefits.
3. Step 3: Identify the account that represents income earned. Service Revenue is the account that records income earned from providing services, making it an example of a revenue account.
4. Step 4: Confirm the classification of Service Revenue. Revenue accounts are credited when income is earned, increasing the business's equity. Service Revenue fits this definition.
5. Step 5: Conclude that Service Revenue is the correct answer, as it is the only account among the options that represents income earned by the business.