Which of the following is NOT typically included in a balance sheet?

A balance sheet is a financial statement that provides a snapshot of an organization’s financial position at a specific point in time, focusing on what the organization owns and owes. It is structured around three main components: assets, liabilities, and equity.

Assets represent everything the organization owns, such as cash, accounts receivable, inventory, investments, and property. Liabilities encompass all the debts and obligations the organization has, which may include loans, accounts payable, and other financial commitments. The relationship between these two components, alongside equity (or net assets), helps stakeholders understand the overall financial health and stability of the entity.

Net income, which reflects the company’s profitability over a specified period, is not reported on the balance sheet. Instead, it appears on the income statement, which summarizes revenues and expenses to determine the profit or loss over a particular period. The balance sheet may derive equity from net income by reflecting retained earnings, which are cumulative net income not distributed to shareholders but reinvested in operations. However, net income itself does not appear directly on the balance sheet as part of its structure.

Net assets, which are equal to total assets minus total liabilities, reflect the residual interests of the organization’s owners and are a component presented within the equity section of