Which account would typically appear on the balance sheet but not on the income statement?

• A. Interest Payable
• B. Sales Revenue
• C. Cost of Goods Sold
• D. Dividends

Answer: (A)

The main idea is that the balance sheet shows positions at a point in time (assets, liabilities, and equity), while the income statement shows performance over a period (revenues and expenses). Interest payable is a liability that has accrued but hasn’t been paid yet, so it sits on the balance sheet. It isn’t a revenue or expense line by itself on the income statement ( the related expense would appear there, but the payable account remains a balance sheet item). The other options represent items that would appear on the income statement (sales revenue and cost of goods sold) or affect equity on the balance sheet (dividends) rather than being a standalone balance sheet liability.