Which one of the following is not a key linkage among the four primary financial statements?
A) The expenses in the income statement link to the total liability balance.
B) The statement of cash flows links to ending cash in the balance sheet.
C) The income statement links to the ending retained earnings in the statement of stockholders' equity.
D) The statement of stockholders' equity links to ending equity in the balance sheet.

Question

Quizplus · Accepted Answer

The expenses in the income statement are not linked to the total liability balance. An unpaid expense might at one point in time be listed as a liability; however, the total of liabilities and expenses is rarely the same.

Which One of the Following Is Not a Key Linkage