Of the following, which is not on the income statement?

The income statement, also known as the profit and loss statement, primarily focuses on revenues and expenses to determine the net income of a business over a specific period. One crucial aspect of the income statement is that it reflects operational performance by detailing how much money is earned and spent in that timeframe.

Shareholder's equity, however, represents the owners’ residual interest in the assets of a company after deducting liabilities. It appears on the balance sheet, not on the income statement. The income statement reports on operational metrics, while the balance sheet provides a snapshot of the company's financial position at a given moment. Therefore, shareholder's equity is the option that stands apart from items typically found on the income statement.

In contrast, earnings per share, non-operating expenses, and gross margin on sales are components that do feature on the income statement. Earnings per share (EPS) is derived from net income and represents the portion of a company's profit allocated to each outstanding share, making it a key metric on the income statement. Non-operating expenses encompass costs not related to the core business operations, which are essential for calculating net income. Gross margin on sales indicates how much profit a company makes after deducting the costs associated with producing its goods, and it also forms