What Are the Two Basic Types of Income Statement Accounts

question 33

Multiple Choice

What are the two basic types of income statement accounts?

• A) Asset and liability
• B) Income and expense
• C) Asset and expense
• D) Income and liability

Understand the timing and requirements for depositing and reporting payroll taxes.

Identify the responsibilities of employers in terms of federal and state income tax withholdings.

Calculate retirement fund contributions based on gross earnings.

Understand the structure and function of the cardiac conduction system.

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Definitions:

Agency Coupled With An Interest

An irrevocable agency agreement in which the agent is given an interest in the subject matter of the agency. Also called irrevocable agency.

Principal

The original sum of money borrowed in a loan, or the amount of the investment, not including the interest or profits.

Agency Relationship

A legal bond where one party, the agent, acts on behalf of another, the principal, in dealings with third parties.

Financial Year End

Financial year end is the completion of a one-year, or 12-month, accounting period; the date when companies must finalize their financial statements and report their financial performance.