Which type of accounts is associated with income statement and balance sheet accounts?

General Ledger Accounts are crucial because they serve as the primary records for all financial transactions in the accounting system. They encompass both income statement accounts— which track revenues and expenses—and balance sheet accounts, which capture assets, liabilities, and equity. The financial performance of a business over a certain period is reflected in the income statement, while the financial position at a specific point in time is depicted in the balance sheet.

Understanding the interplay between these two types of accounts is fundamental for accurate financial reporting and analysis. They are integrated within a financial system, enabling a clear view of a company's financial health and operational performance. Custom Accounts, Metric Accounts, and Modeled Accounts serve different purposes in a financial planning and analysis context but do not combine the functions associated with both the income statement and the balance sheet in the same way that General Ledger Accounts do.