Learn On Your Own Is Net Income Assets?:

Net Income or Net Earnings represent entity’s residual income after deducting all required expenditures including taxes. Net Income comes down from the Profit & Loss Account and is added to with the Capital Account of the concern. So in that sense, it cannot be treated as assets.

But under double entry system of accounting , as the value of net income is expressed in terms of money which is considered as current assets. So in that sense net income signify increase in assets. Having said this, the net income so earned may be distributed among the shareholders or the company can use to either pay off its debts, or invest in new projects.

In that sense, Net Income it may be treated as Retained Earnings that refers to that percentage of net earnings of a company that have not been distributed to the shareholders as dividends, but are retained by the company to be reinvested in the business for further growth or to pay off liabilities (at the discretion of its board of directors). Retained Earnings is also called plowing back of profits is cumulative profits because after every accounting year, some amount of profits may be retained at the discretions of the Board of Directors.

But after all this, Net Income cannot be treated as assets because it is eventually added to equity of the concern.