Jones Financial Services, Inc. performed accounting services for a client in December. A bill was mailed to the client on December 30. The company received the client's check by mail on January 5. Which of the following accounts should appear on the income statement for the year ended December 31 as related to the services performed?

Question

Quizplus · Accepted Answer

Service Revenue should appear on the income statement for the year ended December 31 as it represents revenue earned for services performed during December. Unearned Revenue would represent payment received for services not yet performed or earned, so it would not be appropriate for this scenario. Accounts Payable and Prepaid Expense represent liabilities and assets, respectively, and do not reflect revenue earned for services performed.