Due to the relationship of financial statements, the statement of retained earnings links the income statement to the balance sheet.

Name: Due to the relationship of financial statements, the statement of retained earnings links the income statement to the balance sheet.
Brand: Quizplus
Rating: 4.7 (37 reviews)

Question

Quizplus · Accepted Answer

The statement of retained earnings reconciles the net income reported on the income statement with the retained earnings reported on the balance sheet, thus linking the two financial statements together.

Due to the Relationship of Financial Statements, the Statement of Retained