I would think not because income and savings would be almost identical (considering you are saving) and if you are not saving then you don't have that asset, right?
2006-10-03 04:31:32 · 4 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
A balance sheet lists CURRENT assets and CURRENT liabilities.
If you have not earned the income, then it is not an asset (yet). If you have earned the income, then it would be listed as an asset only if you put it into an account or made an asset purchase.
It is very reasonable to anticipate earning income and growing your assets, but those are not listed on the balance sheet.
2006-10-03 12:15:06 · answer #1 · answered by derek 4 · 0⤊ 0⤋
No. A balance sheet is comprised of assets, liabilities and equity. An income statement is where you would find income and expenses. Income is actually considered Equity and it is added to Retained Earnings in the Equity section of the Balance Sheet, not an asset though.
2006-10-03 04:37:57 · answer #2 · answered by Jeff C 2 · 0⤊ 0⤋
If you mean a balance sheet on standard double-entry format then the answer is 'No'.
Income would show on the Trading Account as 'Sales' on one side and on the other would appear 'Purchases' and 'Wages'. Take the cost of Purchases from the income generated by Sales and you have your 'Gross Profit'.
This is then transferred to your Profit and Loss Account where such things as interest generated and rentals are added on one side and on the other all Expenses such as travel, stationery, insurance, depreciation and so on. The costs are then taken from Gross Profit to leave 'Net Profit'.
Net Profit is transferred to your 'Capital Account' which shows the value of the business including fixed assets (such as buildings, vehicles, fixtures and fittings etc) and floating assets (cash balances, investments etc) and debtors. From this are deducted liabilities (Bank loans, Creditors etc) and your personal income will show as 'Drawings'.
If you are not in business then your income is just that, money generated from earnings and investments and your savings would be any portion of this that you retain rather than spend.
2006-10-03 04:46:15 · answer #3 · answered by quatt47 7 · 0⤊ 0⤋
income is not listed on the balance sheet, it appears on the income statement.
2006-10-03 04:37:08 · answer #4 · answered by Brad S 1 · 0⤊ 0⤋