Kostner Financial Services 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

The income statement reflects revenues earned during the period regardless of when the payment is received. Therefore, Service Revenue is the appropriate account to appear on the income statement for the services performed in December. Unearned Revenue, Accounts Payable, and Prepaid Expense are all balance sheet accounts and are not related to the revenue recognition process.

Kostner Financial Services Performed Accounting Services for a Client in December.A