Which component is NOT found in the Income Statement?

The Income Statement, also known as the Profit and Loss Statement, provides a summary of a company's revenues and expenses during a specific period, ultimately showing the net income or loss for that period. The key components typically included in an Income Statement are revenue or sales, expenses (including interest expense), and net income.

Current assets, on the other hand, are reported on the Balance Sheet, which reflects the company's financial position at a specific point in time. Current assets include cash, accounts receivable, inventory, and other assets expected to be converted into cash or consumed within a year. Their presence in the financial statements is crucial but does not belong in the Income Statement framework, which is focused specifically on operational performance over a period rather than the assets owned at a specific point in time.

By understanding the functioning and purpose of an Income Statement, it becomes clear why current assets do not fit within its components, reinforcing the distinction between different financial statements within accounting.