Which of the following accounts would NOT be reported on the balance sheet?

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

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the purpose of the balance sheet. The balance sheet reports a company's financial position at a specific point in time, showing assets, liabilities, and equity accounts.
2. Step 2: Identify which accounts are classified as assets, liabilities, or equity. For example, 'Accounts Receivable' and 'Cash' are asset accounts, while 'Retained Earnings' is an equity account.
3. Step 3: Recognize that revenue accounts, such as 'Service Revenue,' represent income earned during a period and are reported on the income statement, not the balance sheet.
4. Step 4: Confirm that 'Service Revenue' is not reported on the balance sheet because it is a temporary account closed to retained earnings at the end of the accounting period.
5. Step 5: Conclude that among the given options, 'Service Revenue' is the account that would NOT be reported on the balance sheet.