In accounting, sales is classified as a revenue account because it represents the income generated from the sale of goods or services. Revenue accounts are crucial as they reflect the financial performance of a business over a specific period.

Sales revenue is reported on the income statement (also known as the profit and loss statement), which summarizes the revenues and expenses incurred during a specific period, typically a fiscal quarter or year. This financial document provides insight into a company’s profitability by highlighting net income or loss.

Thus, the correct answer is:
- Sales is a **revenue** account and is reported on the **income** **statement**.

Question

In accounting, sales is classified as a revenue account because it represents the income generated from the sale of goods or services. Revenue accounts are crucial as they reflect the financial performance of a business over a specific period.

Sales revenue is reported on the income statement (also known as the profit and loss statement), which summarizes the revenues and expenses incurred during a specific period, typically a fiscal quarter or year. This financial document provides insight into a company’s profitability by highlighting net income or loss.

Thus, the correct answer is:
- Sales is a **revenue** account and is reported on the **income** **statement**.

Knowee AI · Accepted Answer

In accounting, sales is classified as a revenue account because it represents the income generated from the sale of goods or services. Revenue accounts are crucial as they reflect the financial performance of a business over a specific period.

Sales revenue is reported on the income statement (also known as the profit and loss statement), which summarizes the revenues and expenses incurred during a specific period, typically a fiscal quarter or year. This financial document provides insight into a company’s profitability by highlighting net income or loss.

Thus, the correct answer is:
- Sales is a **revenue** account and is reported on the **income** **statement**.

Sales is a(n) (expense/revenue/asset) account and is reported on the (income/balance) (statement/sheet).

Question

Sales is a(n) (expense/revenue/asset) account and is reported on the (income/balance) (statement/sheet).

Solution

Similar Questions

Upgrade your grade with Knowee