Which of the following concepts assume that information flows from the income statement through the statement of retained earnings,the statement of owners' equity to the balance sheet?
A) Articulate concept
B) Going concern concept
C) Opportunity cost concept
D) Leveraging concept

Question

Quizplus · Accepted Answer

The Articulate concept states that financial statements should be prepared in a logical and consistent manner, with the flow of information from one statement to another. Therefore, information flows from the income statement to the statement of retained earnings, then to the statement of owners' equity, and finally to the balance sheet. The other concepts listed do not relate to this specific flow of information.

Which of the Following Concepts Assume That Information Flows from the Income