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