Question

Affect both income statement and balance sheet accounts

A) Office Equipment.
B) Cash.
C) Wages Payable.
D) Dividends.
E) Sales Salaries Expense.

Answer 1

Cash, wages payable, and sales salaries expense affect both the income statement and the balance sheet.

Step-by-step explanation:

The accounts that affect both the income statement and the balance sheet are:

1. Cash: Cash is considered both an asset on the balance sheet and is also reflected in revenue and expenses on the income statement.
2. Wages Payable: Wages payable is a liability that appears on the balance sheet and is also included in expenses on the income statement.
3. Sales Salaries Expense: Sales salaries expense is an expense item on the income statement and is also included in liabilities on the balance sheet if wages have not yet been paid.