Which of the following is NOT a component of the balance sheet?

The component that is not part of the balance sheet is net income. The balance sheet is structured to provide a snapshot of a company's financial position at a specific point in time, and it consists of three main components: assets, liabilities, and owners' equity.

Assets represent what the company owns, including cash, inventory, and property. Liabilities show what the company owes to others, such as loans and accounts payable. Owners' equity reflects the owners' residual interest in the assets after deducting liabilities, essentially indicating what is left for the owners after all debts have been paid.

Net income, on the other hand, is found on the income statement, which summarizes a company's revenues and expenses over a period of time, resulting in a profit or loss. While net income contributes to the changes in owners' equity through retained earnings, it does not appear directly on the balance sheet itself. Thus, identifying net income as not being a component of the balance sheet is accurate and aligns with the fundamental accounting structure.