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Does a balance sheet contain net income in accounting?
Yes, a balance sheet contains net income in accounting. Specifically, the net income can be found in the owner's equity account of the balance sheet. Although the income statement is a separate financial statement from the balance sheet, the ending balance in the income statement is closed to ownership equity. Closing means that the amount is transferred to the balance sheet so that each of the income statement accounts will have a zero balance in the subsequent accounting year.