Net income or profit is credited to which of the following accounts?

Net income or profit is credited to the Retained Earnings account because this account reflects the portion of a company's profits that are retained in the business rather than being distributed as dividends to shareholders. Retained earnings are a cumulative measure of the net income that a company has earned over time, minus any dividends paid.

When a company generates a profit, the net income increases the Retained Earnings account on the balance sheet. This process shows an accumulation of earnings that can be reinvested into the business for growth, used for debt repayment, or saved for future use. The retention of earnings is crucial for funding operations and supporting long-term financial health.

In contrast, Operating Expenses reflect the costs required to run the business, Accounts Payable pertains to the obligations to pay off short-term debts to creditors, and Revenue Accounts track the income generated from business activities before any expenses have been subtracted. These accounts serve different financial reporting purposes and do not directly influence the accumulation of profits that are retained within a company.