The amount of net income is transferred from ________ to ________.
A)the income statement; the statement of owner's equity
B)the balance sheet; the statement of cash flow
C)the balance sheet; the income statement
D)the income statement; the statement of expenditures

Question

Quizplus · Accepted Answer

Net income is calculated on the income statement, and it represents the amount of income earned by the company after deducting all expenses. This amount is then transferred to the statement of owner's equity, which shows how the company's net worth has changed over a period of time. Therefore, choice A is the correct answer. The other choices are incorrect because the balance sheet shows the company's assets, liabilities, and equity at a specific point in time, while the statement of cash flow shows how cash is generated and used by the company during a period. The statement of expenditures is not a commonly used financial statement.

The Amount of Net Income Is Transferred from ________ to ________

The Amount of Net Income Is Transferred from to