The amount of net income shown on the income statement also appears on the:
A) statement of assets
B) statement of retained earnings
C) balance sheet
D) statement of financial position

Question

Quizplus · Accepted Answer

The amount of net income is used to calculate the balance in the retained earnings account, which is shown on the statement of retained earnings. It does not appear on the balance sheet or statement of financial position, as these reports show the assets, liabilities, and equity of a company at a specific point in time, rather than the company's income statement.

The Amount of Net Income Shown on the Income Statement