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.