Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

The Financial Statements

Financial Accounting

1. Introduction to Accounting

The Financial Statements

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Multiple Choice

Which of the following accounts appears in one of the income statement columns of the worksheet?

Service Revenue

Owner's Capital

Prepaid Insurance

Accounts Payable

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Verified step by step guidance

Step 1: Understand the purpose of the income statement. The income statement is used to report a company's revenues and expenses over a specific period, ultimately showing the net income or loss.

Step 2: Identify the types of accounts that appear on the income statement. These include revenue accounts (e.g., Service Revenue) and expense accounts (e.g., Rent Expense, Salaries Expense). Accounts related to assets, liabilities, and equity do not appear on the income statement.

Step 3: Analyze each account provided in the problem: Service Revenue, Owner's Capital, Prepaid Insurance, and Accounts Payable. Determine whether each account is related to revenues or expenses.

Step 4: Recognize that Service Revenue is a revenue account, which is reported on the income statement. The other accounts (Owner's Capital, Prepaid Insurance, and Accounts Payable) are not revenue or expense accounts and therefore do not appear on the income statement.

Step 5: Conclude that the correct account appearing in one of the income statement columns of the worksheet is Service Revenue, as it directly contributes to the calculation of net income.