Which of the following types of accounts appear on the Statement of Financial Position and Statement of Income respectively?
Understand the Problem
The question is asking about the types of accounts that appear on both the Statement of Financial Position and the Statement of Income, specifically looking for the correct pair of account types.
Answer
Permanent accounts, Temporary accounts
The final answer is: Permanent accounts appear on the Statement of Financial Position and Temporary accounts appear on the Statement of Income.
Answer for screen readers
The final answer is: Permanent accounts appear on the Statement of Financial Position and Temporary accounts appear on the Statement of Income.
More Information
Permanent accounts (assets, liabilities, equity) are listed on the Statement of Financial Position. Temporary accounts (revenues, expenses) are involved in the Statement of Income.
Tips
A common mistake is confusing temporary accounts as being permanent, although they are closed each period.
