What Are the Two Basic Types of Income Statement Accounts

question 19

Multiple Choice

What are the two basic types of income statement accounts?

• A) Asset and profit
• B) Equity and expense
• C) Income and equity
• D) Income and expense

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Definitions:

Subsidiary Ledger

A subsidiary ledger is a detailed ledger that contains account-specific information, supporting and connected to the general ledger for a comprehensive accounting system.

Sales Journal

A dedicated journal used to record a company's sales transactions, tracking the selling of goods and services.

Sales Revenue

The total amount of money generated from the sale of goods or services before any expenses are subtracted.

Credits

Accounting entries that increase liabilities or decrease assets, typically signaling the source of financing or revenue.