Delivery Income is classified as what component of a balance sheet?

Delivery Income is classified under Owner's Equity on a balance sheet because it represents the revenue generated from delivery services that contributes to the overall value of the owner's interest in the business. This income is earned as part of the operations and increases the net worth of the business, which is reflected in the equity section of the balance sheet.

Owner's Equity encompasses all of the owner's claims after all liabilities have been settled. Thus, when a business earns income, it directly enhances the owner's financial position. Revenue items, while related to the income statement, ultimately feed into equity through retained earnings, signifying the owner's profit after expenses.

In contrast, assets represent what the business owns, liabilities represent what the business owes, and the term "income" typically refers to the revenue performance as it appears on the income statement and is not a component of the balance sheet itself.