Asked Oct 25, 2019

Income Statement

1) Why are items such as sales and labour/Gross Profit on the CR side and items like Operating Expenses on the DR side?

2) What are examples of Interest Expense and Depreciation Expense?

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Step 1


  • Revenues are recorded in the credit side of the income statement. Thus, sales and labour/gross profits are entered in the credit side. Increase in revenue accounts are stated as credit.
  • A decrease on the asset side ...

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