The Net Income Balance Sheet is an official document that provides an overview of a company’s financial position at a given point in time. It is composed of two main components: Assets and Liabilities. On the Asset side, the Accountant must include all income and positive activities such as revenue generated from sales, profits from investments, or gains from marketable securities. On the Liability side, the Accountant must list any expenses or losses such as salaries, debts, and quality control costs. Finally, the Equity section should show how much of the Company’s profits are being retained in the business after paying off all outstanding balances. By examining the Net Income Balance Sheet, one can get a better understanding of a company’s financial health; it is a valuable tool for management to make key economic decisions.