Accounting Fundamentals Certification (AFC) Practice Test

Question: 1 / 400

What type of account are Sales and Fees Earned both classified as?

Expense Accounts

Asset Accounts

Liability Accounts

Revenue Accounts

Sales and Fees Earned are classified as revenue accounts because they represent the income generated from the primary activities of a business, such as selling products or providing services. Revenue accounts reflect the economic benefit received by the company in the form of cash or other assets when transactions occur.

Understanding the classification of these accounts is crucial, as they play a key role in the financial statements, particularly the income statement, where they impact net income. Revenue accounts contribute to the overall financial health of the company, indicating its ability to generate income from its core operations.

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