{"id":263602,"date":"2025-07-21T07:55:17","date_gmt":"2025-07-21T07:55:17","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=263602"},"modified":"2025-07-21T07:55:21","modified_gmt":"2025-07-21T07:55:21","slug":"which-of-the-following-accounts-are-included-in-an-income-statement","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/07\/21\/which-of-the-following-accounts-are-included-in-an-income-statement\/","title":{"rendered":"Which of the following accounts are included in an income statement"},"content":{"rendered":"\n<p>Which of the following accounts are included in an income statement? <\/p>\n\n\n\n<p>A) Land, Salaries Payable <\/p>\n\n\n\n<p>B) Owner&#8217;s Name, Capital, Owner&#8217;s Contribution <\/p>\n\n\n\n<p>C) Furniture, Cash<\/p>\n\n\n\n<p> D) Service Revenue, Utilities Expense<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-ast-global-color-6-color\">The correct answer and explanation is:<\/mark><\/strong><\/p>\n\n\n\n<p>The correct answer is <strong>D) Service Revenue, Utilities Expense<\/strong>.<\/p>\n\n\n\n<p>An income statement reports a company&#8217;s financial performance over a specific period. It includes revenue and expenses, which are used to calculate the net income or loss for that period.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Service Revenue<\/strong> represents the money earned from providing services to customers. It is one of the main sources of income for service-oriented businesses and appears at the top of the income statement.<\/li>\n\n\n\n<li><strong>Utilities Expense<\/strong> refers to the costs incurred for using utilities, such as electricity, water, and gas. This expense is subtracted from the revenue to calculate the company\u2019s profitability.<\/li>\n<\/ul>\n\n\n\n<p>The other options do not belong on the income statement:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>A) Land, Salaries Payable<\/strong>: Land is an asset and appears on the balance sheet, not the income statement. Salaries Payable is a liability, and liabilities are also reported on the balance sheet.<\/li>\n\n\n\n<li><strong>B) Owner&#8217;s Name, Capital, Owner&#8217;s Contribution<\/strong>: These terms refer to equity-related accounts that show the owner\u2019s investment and withdrawals from the business. They appear on the balance sheet, not the income statement.<\/li>\n\n\n\n<li><strong>C) Furniture, Cash<\/strong>: Furniture is an asset, and cash is a current asset. Both of these would appear on the balance sheet as part of the company\u2019s resources.<\/li>\n<\/ul>\n\n\n\n<p>The primary goal of an income statement is to show whether a company is profitable over a specific time period, and it includes revenues (like service revenue) and expenses (like utilities expense). The income statement helps stakeholders, including managers and investors, understand the company&#8217;s financial health and operational efficiency.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Which of the following accounts are included in an income statement? A) Land, Salaries Payable B) Owner&#8217;s Name, Capital, Owner&#8217;s Contribution C) Furniture, Cash D) Service Revenue, Utilities Expense The correct answer and explanation is: The correct answer is D) Service Revenue, Utilities Expense. An income statement reports a company&#8217;s financial performance over a specific [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-263602","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/263602","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=263602"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/263602\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=263602"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=263602"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=263602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}