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where does service revenue go on a balance sheet

1Answers
DelDaniel
12/10/2025, 10:42:58 PM

Service revenue is recorded on the Income Statement under Revenue, not directly on the Balance Sheet. Its impact appears indirectly by increasing cash or Accounts Receivable (Assets) and, after closing entries, raising Retained Earnings (Equity), reflecting the financial benefits earned from services provided and showing the company’s overall performance and profitability.

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