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Interrelationships of the financial statements- please in your own wor.pdf

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ColinjSWDavidsonn

Retained earnings connects the income statement to the statement of owners' equity and balance sheet. Retained earnings represents the portion of net income that is retained by the company rather than distributed to shareholders. It starts on the income statement, increases through net income, flows to the statement of owners' equity, and ends as an asset on the balance sheet.

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Interrelationships of the financial statements: please in your own words, explain what account/financial statement line item connects the Income Statement to the Statement of Owners Equity, and then through to the Balance Sheet? Please explain briefly how this account/financial statement line item flows through the statements.

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Interrelationships of the financial statements- please in your own wor.pdf

  • 1. Interrelationships of the financial statements: please in your own words, explain what account/financial statement line item connects the Income Statement to the Statement of Owners Equity, and then through to the Balance Sheet? Please explain briefly how this account/financial statement line item flows through the statements.