Are security deposits income on the profit and loss sheet?

[Jay Boyle]

Hi I am new to apartments. I presently have a 90 unit under LOI. The financial data I received from the seller shows the incoming security deposits as income and the outgoing security refunds as expenses. is this typical? I am not very experienced with book keeping or accounting but it seems to me that security deposits and refunds are liabilities for the balance sheet but not income and expenses. Am I wrong? thank you very much! jay

[Michael Germinario]

Balance sheet for sure.