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., w hile examples lists of i ncome statements accounts include Sales, Cost of Sales, Fees Earned, Rent Expenses, Salaries Expenses, etc. Basically 3 types of accou nts i.e., Assets, Liab ilities a nd Owner’s Equity or Equity are included in b ala nce s heet accou nts w hile 4 types of accou nts Revenues, Gains, Expenses, losses are recorded in income statement accounts.