Which Accounts Do Not Appear on the Balance Sheet — Understand | |
The balance sheet showcases a company's financial position, listing assets, liabilities, and equity. However, certain accounts, such as revenue, expenses, and dividends, do not appear on the balance sheet. These accounts are recorded on the income statement or statement of retained earnings because they reflect the company’s performance over a period rather than its financial position at a specific point in time. Understanding this distinction helps in accurate financial analysis and reporting. | |
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