Which of the following accounts is reported on an income statement?

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

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 listed: Common Stock is an equity account, Unearned Revenue is a liability account, Service Revenue is a revenue account, and Accounts Receivable is an asset account.
3. Step 3: Recall that the income statement includes revenue and expense accounts, but not asset, liability, or equity accounts directly.
4. Step 4: Recognize that Service Revenue is a revenue account and therefore is reported on the income statement as part of the company's earnings.
5. Step 5: Conclude that among the options, only Service Revenue appears on the income statement, while Common Stock, Unearned Revenue, and Accounts Receivable appear on the balance sheet.