part 1.

Which of the following statements is true about Expenses?

They belong on the income statement and show what the company has earned by providing goods or services.

They are earned by the company, not in the ordinary course of business.

They belong on the balance sheet and show amounts that a company owes.

They belong on the income statement and show what the company has incurred in the process of earning revenues.

part 2.

When a company journalizes a sale of services on account, which account is credited?

Accounts Receivable

Net Income

Cash

Service Revenue

Accounts Payable