209k views
4 votes
Service revenue
a)BS
b)IS
c)SE
d)CF

User Alan Grosz
by
8.0k points

1 Answer

2 votes

Final answer:

Service revenue is reported in the Income Statement (IS) as it represents income earned from providing services to customers and is recognized when the service is rendered (B).

Step-by-step explanation:

The question relates to how service revenue is reported in financial statements. The acronym options given correspond to different financial statement components:

  • BS stands for Balance Sheet
  • IS stands for Income Statement
  • SE stands for Statement of Equity
  • CF stands for Cash Flow Statement

Service revenue is recorded on the Income Statement. It represents the income earned by a company from its normal business operations, like providing services to its customers. When a company performs a service and charges the customer, this revenue is recognized and reported within the period when the service was provided, according to the accrual basis of accounting.

In the given options: a) BS, b) IS, c) SE, and d) CF, the correct answer is b) IS, which stands for Income Statement.

User Zito Relova
by
7.9k points

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