Almost every revenue or expense account on the income statement has one or more related accounts on the balance sheet.

Question

Quizplus · Accepted Answer

This is true because revenue and expenses are reflected on the income statement, while their related assets, liabilities, and equity accounts are reflected on the balance sheet. For example, revenue is related to accounts receivable on the balance sheet, while expenses are related to accounts payable or accrued expenses on the balance sheet.

Almost Every Revenue or Expense Account on the Income Statement