Which accounts are reported on the income statement?

Which accounts are reported on the income statement?

• A. Revenues, Expenses
• B. Assets, Liabilities
• C. Cash, Inventory
• D. Equity, Revenue

Answer: (A)

The income statement shows how well a company performed over a period by recording what it earned and what it spent. It lists revenues (income from selling goods or services) and expenses (costs incurred to operate, such as wages, rent, and depreciation). The result is net income or net loss, which is revenues minus expenses. Items like cash, inventory, and other assets, as well as liabilities and equity, appear on the balance sheet or other statements, not on the income statement. So the accounts reported on the income statement are revenues and expenses.

The income statement shows how well a company performed over a period by recording what it earned and what it spent. It lists revenues (income from selling goods or services) and expenses (costs incurred to operate, such as wages, rent, and depreciation). The result is net income or net loss, which is revenues minus expenses. Items like cash, inventory, and other assets, as well as liabilities and equity, appear on the balance sheet or other statements, not on the income statement. So the accounts reported on the income statement are revenues and expenses.