Final answer:
A document that tracks a company's income and expenses is known as a balance sheet. It lists a company's assets and liabilities in a T-account format, ensuring that the company's finances are balanced.
Step-by-step explanation:
A document that tracks a company's income and expenses is referred to as a balance sheet. The balance sheet is a financial statement that provides a snapshot of what a company owns and owes, as well as the amount invested by shareholders. It uses a two-column format known as a T-account, where assets are listed on one side and liabilities on the other, creating a T-shape with the vertical line down the middle and the horizontal line under the column headings for "Assets" and "Liabilities". This structure helps to ensure that the company's finances are properly balanced, with the equation Assets = Liabilities + Shareholder's Equity serving as a foundational accounting principle.