The net income shown on the income statement is equal to the ending equity total on the statement of stockholder's equity.

Name: The net income shown on the income statement is equal to the ending equity total on the statement of stockholder's equity.
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Question

Quizplus · Accepted Answer

Net income is a component that contributes to the change in equity over a period, but ending equity also includes other items such as beginning equity, dividends, and any other changes in equity.

The Net Income Shown on the Income Statement Is Equal