Which type of account would not be reported on the income statement?

Expert Solution

Which type of account would not be reported on the income statement:

All revenue and expenses are reported in the Income Statement. According to matching principle , all expenses incurred in the given period to earn the revenue of the period should be reported to arrive at the income.

Other accounts like assets, liabilities and stockholders’equity are not reported in the Income Statement:

Example of accounts not reported in the Income Statement:

ASSETS: Cash, Accounts Receivable, Investments, Notes Receivable, Inventory, Prepaid expenses ,Plant & Equipment , Accumulated depreciation etc
LIABILITIES: Accounts Payable, Note payable, Accrued expenses, Unearned Revenues, Long and short term debts, Provision for bad debts, Warranty payable
STOCKHOLDERS’ EQUITY: Common Stock, Preferred Shares, Additional paid up Capital, Treasury Stock, Dividends, Retained Earnings, Revaluation reserve etc

ekkarill92 answered 1 year ago

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