1 amount of retained earnings reported is equal to net income
2 there is no link, each contains different accounts and provides different information
3 retained earnings is added to total assets and reported on balance sheet
4 net income increases ret. earnings on statement of ret. earnings, which ultimately increases ret. earnings on the balance sheet
having a hard time understanding why both 2 and 4 are not correct?
Thank you for the opportunity to help you with your question!
the correct answer is
4. net income increases ret. earnings on statement of ret. earnings,
which ultimately increases ret. earnings on the balance sheet
Thank you, great explanation - thanks again.
Welcome am happy to help you. Do you still have more questions?
Content will be erased after question is completed.
Enter the email address associated with your account, and we will email you a link to reset your password.
Forgot your password?