What is an income statement?
The income statement is one of three statements used in both corporate finance (including financial modeling) and accounting. The statement displays the company’s revenue, costs, gross profit, selling and administrative expenses, other expenses and income, taxes paid, and net profit in a coherent and logical manner.
Should account payable appear in income statement?
The income statement records the income and expenses of the company. Here the expenses contains the debit balance and the income contains the credit balance. Also, the account payable is a liability account so the same is not shown on the income statement. Therefore we can conclude that the account payable should not appear in the income statement.
What are the different types of income statement accounts?
A few of the many income statement accounts used in a business include Sales, Sales Returns and Allowances, Service Revenues, Cost of Goods Sold, Salaries Expense, Wages Expense, Fringe Benefits Expense, Rent Expense, Utilities Expense, Advertising Expense, Automobile Expense, Depreciation Expense, Interest Expense.