Which Accounts Do Not Appear On The Balance Sheet? (Check All That Apply.)

The correct options of this multiple choice question (mcq) are C, F, G and J as Utility Expense and Service Revenue are Income Statement Accounts which are Temporary Accounts (TA) as these are zero out at the end of the accounting period, so these having no balances and transferred to Income Summary Account.

Dividend is a TA and a Contra Equity Account but not an Expense. It is deducted from retained earnings in the statement of retained earnings, so it is neither appeared on Balance Sheet (BS) nor on Income Statement. However, if the dividend is not paid to shareholder after the declaration, then dividend payable is shown on balance sheet on liabilities & equity side under current liabilities section.

The profit sharing also does not appear on BS. It shows the portion of profits distributed among employees which is an expense for the company to pay to employees in the form of bonuses, incentives, etc., as a reward for their valuable achievements & contributions made for the company.

In balance sheet, all the Permanent Accounts are recorded on a specific time of a date. These include Assets, Liabilities and Equity.

The option A is incorrect as Owner’s Equity appear on BS as it is a Balance Sheet Account (BSA).

The option B is also a wrong choice here as Accounts Payable is a asset so it is also part of BS on liabilities & equity side under current liabilities section.

The choice D of this mcq is also not correct as Account Receivable is a BSA, so these are also shown on BS as current assets on assets side.

The option F is also an incorrect choice as Retained Earnings is a part of equity and added to opening equity so it is shown on equity section on BS.

The option G is also incorrect as Accumulated Depreciation is also shown on BS. It is a Contra Asset Account (CAA) which is deducted from relevant fixed assets / non-currents. It shows on BS just a deduction from non-current assets and does not appear as a separate line item.

The option I is also wrong one as Allowance for Doubtful Accounts is also appeared on BS as it is also a CAA which is deducted from Accounts Receivable as a deduction and not a separate line item.