The income accounts

The income statement accounts consist of the expense accounts and the revenue accounts. The income statement accounts do not have an opening balance.

The income statement accounts of accounting

During the course of the fiscal year, a variety of expenses and revenues occur in a company. These must be grouped into categories of the same or similar content before being recorded. The most common accounts are shown in the following overview.

Expense accounts with account designation and content:

• Wages and salaries (compensations for employees)
• Social benefits (Social security contributions paid by the company)
• Interest expense (compensations for capital provided)
• Raw material purchases (Goods needed for production)
• Administrative expenses (costs for phone and postage, consumables)
• Rental/real estate expense (expenses for rent and maintenance)
• General operating expenses
• Depreciations (wear and tear of machines and other goods)

Revenue accounts with account designation and content:

• Manufactured goods/sales of goods (revenues from sales)
• Interest income (money for providing capital to third parties)
• Fee income (revenues from the sale of services)
• Real estate income (revenues stemming from the rental of premises)

The income statement accounts sum up all expenses and revenues accrued during a certain business period. Each year, the balance is reset to zero, and the listing of expenses and revenues starts anew.