The net income (or net loss) must be calculated after the statement of retained earnings is prepared.

Name: The net income (or net loss) must be calculated after the statement of retained earnings is prepared.
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Question

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The net income (or net loss) is calculated on the income statement before the statement of retained earnings is prepared, as it is used to adjust the beginning retained earnings balance to arrive at the ending retained earnings.

The Net Income (Or Net Loss) Must Be Calculated After