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

Question

Quizplus · Accepted Answer

The two basic types of income statement accounts are income and expense. Income accounts include revenue, sales, and any other income earned by the business. Expense accounts include the cost of goods sold, salaries and wages, rent, utilities, and any other expenses incurred in the course of business operations. Asset and liability accounts are typically found on the balance sheet, not the income statement.

What Are the Two Basic Types of Income Statement Accounts