Net income (loss)appears in which two financial statements?
A)Balance sheet and income statement.
B)Income statement and statement of stockholders' equity.
C)Statement of stockholders' equity and balance sheet.
D)Net income appears in only one financial statement.

Question

Quizplus · Accepted Answer

Net income (loss) appears in both the income statement and the statement of stockholders' equity. It is part of the calculation for earnings per share and is also used in determining the amount of dividends to be paid to stockholders. Therefore, the correct choice is B, as net income appears in the income statement and statement of stockholders' equity.

Net Income (Loss)appears in Which Two Financial Statements