The "Net Income" or "Net Loss" is transferred from the income statement to the
A) balance sheet.
B) chart of accounts.
C) statement of owner's equity.
D) trial balance.

Question

Quizplus · Accepted Answer

The "Net Income" or "Net Loss" is transferred to the statement of owner's equity, which shows changes in the owner's equity for a specific period. This is then used to calculate the ending balance of the owner's equity, which is reported on the balance sheet. Therefore, while the net income or loss eventually affects the balance sheet, it is first transferred to the statement of owner's equity. The chart of accounts is a list of all accounts used in a company's accounting system, and the trial balance is a report that lists all accounts and their balances to ensure that the debits and credits are equal.

The "Net Income" or "Net Loss" Is Transferred from the Income