Describe the relationship between the balance sheet and the income statement
RELATIONSHIP BETWEEN THE BALANCE SHEET AND THE INCOME STATEMENT
The income statement links the beginning and ending balance sheets. The beginning balance of the shareholders' equity account Retained Earnings plus net income from the income statement less dividends equals the ending balance of Retained Earnings. The equation that describes the relationship between the balance sheet and the income statement through the Retained Earnings account is as follows:
Retained Earnings (beginning) + Net Income - Dividends = Retained Earnings (ending)
Common terminology often says that the income statement "articulates" with the balance sheet. Retained earnings measures the cumulative excess of net income over dividends for the life of a firm. Cumulative means that retained earnings aggregates all undistributed earnings.
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Carol Crowe and Sheryl Stowe signed astandard form bank guarantee for Joseph Fine and limited their liability to $48,000. Fine is now in default, owing $60,000 to the Bank. Which of the following is TRUE? (Ignore interest and other chargers)
A) Carol's liability is limited to $24,000 B) Carol's liability is limited to $30,000 C) Carol's liability is limited to $48,000 D) If it so chooses, the Bank can proceed against Carol only E) Both C and D
One advantage of peer evaluations is that
A. peers are less politically motivated than supervisors. B. peers may furnish more accurate and valid information than supervisors. C. peers may work harder to help other employees improve performance. D. peers are often partially responsible for the performance of other co-workers.
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A) car B) trucking C) rail D) air
If a contract to do something in certain intervals over a period of less than one year is not in writing, it is not enforceable.
Answer the following statement true (T) or false (F)