Fees earned by a business in exchange for services provided by the business appear on which of the following statements?
A) Balance sheet
B) Income statement
C) Statement of changes in equity
D) Statement of cash flows
E) Statement of financial position

Question

Quizplus · Accepted Answer

Fees earned by a business in exchange for services provided by the business are considered revenue and are reported on the income statement. The balance sheet presents the company's assets, liabilities, and equity at a specific point in time, while the statement of changes in equity shows changes in equity over a period of time. The statement of cash flows reports on the inflows and outflows of cash during a period of time. The statement of financial position is another term for the balance sheet.

Fees Earned by a Business in Exchange for Services Provided