The first classification of main accounts in Microsoft Dynamics 365 for Finance and Operations is the type, which represents the nature of the ledger account, that is, is it a balance sheet account or profit and loss account? The following figure shows an example of a balance sheet and an income statement that contains the profit and loss account:
A balance sheet report represents the assets, liabilities, and owner's equity at specific date, and is also known as the company's financial position. This report's balances are accumulated during the lifetime of the company.
An income statement represents the revenues, ...
