The net income figure appears in all the following financial statements except the
A) statement of cash flows.
B) income statement.
C) statement of retained earnings.
D) balance sheet.

Question

Quizplus · Accepted Answer

The net income does not appear on the balance sheet, as the balance sheet shows the financial position of the organization at a specific point in time, rather than its earnings or losses during a period. The net income appears on the income statement as the difference between the organization's revenues and expenses for a specific period, and on the statement of retained earnings, which shows changes in the retained earnings account over time. The statement of cash flows shows the organization's cash inflows and outflows during a specific period, but does not directly report the net income figure.

The Net Income Figure Appears in All the Following Financial