Which balance sheet account do revenues and expenses affect? How do they affect this account?

Income and expenses affect many balance sheet accounts, but more commonly they affect asset and liability accounts, for example:

• When income is generated from the sale of goods and the provision of a service, it directly affects the cash account if the income is paid in cash, if the income is canceled in the future then it affects the accounts receivable.
• When an expense is incurred for rent, utilities, materials, and supplies, it also affects the cash account if paid in cash, but if the purchase is canceled after several days, it affects the accounts payable.
• Other balance accounts are affected by income and expenses, such as expenses payable, income collected in advance, rent collected, or paid in advance.