Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. whyis the statement of retained earnings the conne

whyis the statement of retained earnings the connecting link betweenin the incime statement and...whyis...

Free

90.2K

Verified Solution

Question

Accounting

whyis the statement of retained earnings the connecting link betweenin the incime statement and the balance sheet ?

Answer & Explanation Solved by verified expert
4.4 Ratings (826 Votes)

In the statement of retained earnings, you use the net income (which was calculated in the income statement) to calculate the ending balance of retained earnings which is a part of the balance sheet.

.

.

COMPANY NAME
Statement of Retained Earnings
Beginning balance of retained earnings XXX
Add: Net income                                       [Taken From the Income Statement] XXX
XXX
Less: Dividends                                             [if any] XXX
Ending balance of retained earnings        [To be used in the balance sheet] XXX

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

In: Accountingwhyis the statement of retained earnings the connecting link betweenin the incime statement and...whyis the statement of retained earnings the connecting link betweenin the incime statement and the balance sheet ?

Other questions asked by students

Calculus
1.2K views

A jet leaves a runway whose bearing is N 36 E from the control tower...

Geometry
1.2K views

Approximate the area under the curve graphed below from z 1 to 2 5 using...

Basic Math
1.2K views

You have three sheets of 2 × 4 m cardboard. You cut squares of side x...

Biology
1.2K views

-Do all mutation change the phenotype? -conjugattion requires a virus (phage for bacteria) to be able to transfer...

Finance
1.2K views

Please Use TI BAII Plus Calculator and Show How You Get the Answer with it. The Company...

Physics
1.2K views

Mahmut with mass 70.0 kg and Güllü with mass 45.0 kg are skating. While Mahmut stands...

Mechanical Engineering
1.2K views

Question: The velocity components for a fluid flow are given as follow: z(x-2)2 u = ty...

Physics
1.2K views

In the circuit shown switch S is initially open and switch S is initially closed...

Physics
1.2K views

Q 20 Find the equivalent capacitance across A B B F A uf C 15...

Physics
1.2K views

Q 6 Two Sources S and S of intensity I and 12 are in front...

Accounting
1.2K views

I have a friend who owns a home business of cloth diapers. She was mentioning...

Accounting
1.2K views

QUESTION 2 a. Identify two users of financial information and give one informational need for...