Which of the following accounts appears on the balance sheet?

• A. Wages Expense
• B. Accounts Payable
• C. Service Revenue
• D. Dividends

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the classification of accounts in financial statements. The balance sheet reports assets, liabilities, and equity accounts at a specific point in time.
2. Step 2: Identify the nature of each account given: 'Wages Expense' and 'Service Revenue' are income statement accounts representing expenses and revenues, respectively.
3. Step 3: Recognize that 'Dividends' represent distributions to shareholders and are typically reported in the statement of retained earnings or statement of changes in equity, not on the balance sheet.
4. Step 4: Note that 'Accounts Payable' is a liability account representing amounts owed to suppliers or creditors, which is reported on the balance sheet under current liabilities.
5. Step 5: Conclude that among the options, only 'Accounts Payable' appears on the balance sheet because it is a liability account.