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

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

Answer: (C)

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 (like Service Revenue) and expense accounts.
3. Step 3: Review each account given: Accounts Receivable is an asset account reported on the balance sheet, not the income statement.
4. Step 4: Retained Earnings is an equity account that appears on the statement of retained earnings and balance sheet, not the income statement.
5. Step 5: Common Stock is also an equity account reported on the balance sheet, not the income statement. Therefore, only Service Revenue is reported on the income statement.