Consider the following account balances of the Shattuck Law Firm at the end of the year: How many of these accounts would appear in Shattuck's year-end income statement?
$$\begin{array} { | l | r | }
\hline \text { Accounts Payable } & \$ 4,400 \
\hline \text { Salaries Expense } & 12,800 \
\hline \text { Cash } & 1,700 \
\hline \text { Common Stock } & 2,400 \
\hline \text { Service Revenue } & 8,300 \
\hline \text { Supplies } & 4,300 \
\hline \text { Retained Earnings } & 1,100 \
\hline \text { Utilities Expense } & 5,000 \
\hline
\end{array}$$
A)Five.
B)Four.
C)Three.

Question

Consider the following account balances of the Shattuck Law Firm at the end of the year: How many of these accounts would appear in Shattuck's year-end income statement?
$$\begin{array} { | l | r | } 
\hline \text { Accounts Payable } & \$ 4,400 \
\hline \text { Salaries Expense } & 12,800 \
\hline \text { Cash } & 1,700 \
\hline \text { Common Stock } & 2,400 \
\hline \text { Service Revenue } & 8,300 \
\hline \text { Supplies } & 4,300 \
\hline \text { Retained Earnings } & 1,100 \
\hline \text { Utilities Expense } & 5,000 \
\hline
\end{array}$$
A)Five.
B)Four.
C)Three.

Quizplus · Accepted Answer

The income statement includes revenues and expenses. Here, "Salaries Expense," "Service Revenue," and "Utilities Expense" would appear in the income statement.

Consider the Following Account Balances of the Shattuck Law Firm