Def - Income Statement Account

Owned by Tom Williams
Nov 16, 2020
1 min read

Income Statement Accounts live on the Income Statement (Profit & Loss Statement, P&L). Year-end balances for Income Statement accounts are automatically closed to the 'Retained Earnings Account' during the year-end close process, ensuring they start the new year with a 0.00 balance. Income Statement Accounts are classified as either Revenue or Expense Accounts.