Difference Between Balance Sheet Accounts And Income Statement Accounts

In Balance Sheet Accounts, permanent accounts or real accounts are studied which are not closed at the end of the accounting period while Income Statement Accounts are those accounts which are not closed at the end of the accounting period, unless the business goes into liquidation, as these accounts are temporary accounts or nominal accounts.

Examples of balance sheet accounts are Cash, Accounts Receivable, Inventory, Accounts Payable, Furniture & Fixture, Loans, Owner’s Equity or Equity, etc., while examples lists of income statements accounts include Sales, Cost of Sales, Fees Earned, Rent Expenses, Salaries Expenses, etc.

Basically 3 types of accounts i.e., Assets, Liabilities and Owner’s Equity or Equity are included in balance sheet accounts while 4 types of accounts Revenues, Gains, Expenses, losses are recorded in income statement accounts.