Which of the following accounts would be reported on the income statement?

• A. Common Stock
• B. Service Revenue
• C. Retained Earnings
• D. Accounts Receivable

Answer: (B)

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 the types of accounts that appear on the income statement. These are primarily revenue accounts and expense accounts.
3. Step 3: Review each account given in the problem: Common Stock, Service Revenue, Retained Earnings, and Accounts Receivable.
4. Step 4: Recognize that Common Stock and Retained Earnings are equity accounts reported on the balance sheet, not the income statement.
5. Step 5: Understand that Accounts Receivable is an asset account, also reported on the balance sheet, while Service Revenue is a revenue account and therefore reported on the income statement.