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

Question

Quizplus · Accepted Answer

The concept referred to in the question is articulation, in which the financial statements are connected so that information flows from one statement to the next. Specifically, the income statement shows net income, which flows into the statement of retained earnings, which in turn flows into the balance sheet as part of the shareholders' equity section.

Which of These Refers to the Concept That Information Flows