Most entities report individual items of revenues and expenses

(such as salary expense, maintenance expense, insurance expense) on their income statement. In order to do this, they set up an account for each expense item. Thus, if the income statement reported 2 revenue items and 10 expense items, there would be at least

(how many?) revenue and expense accounts. We shall describe these accounts in later parts. The entries to them are made in exactly the same way as in the simple example given here.