At the end of an accounting period, the amount of net profit earned by a company is transferred to the balance sheet and reported under which one of the following categories?
A) Assets
B) Liabilities
C) Shareholders' equity
D) The amount of net profit is not transferred to the balance sheet.

Question

Quizplus · Accepted Answer

Net profit earned by a company represents an increase in the shareholders' equity. Therefore, it is reported under the category of shareholders' equity on the balance sheet.

At the End of an Accounting Period, the Amount of Net