Financial Statements

Question 1

What is the relationship between the income statement and retained earnings?

Answer 1

Net income from the income statement is a component in determining ending retained earnings on the statement of retained earnings.

Question 2

What is the relationship between the balanfe sheet
and retained earnings?

Answer 2

Ending retained earnings from the statement of retained earnings is reported on the balance sheet.

Question 3

On the retained earnings statement, do you subtract or add net income from dividends?

Answer 3

subtract

Question 4

What goes on the income statement?

Answer 4

revenues, expenses, and net income

Question 5

What goes on the retained earnings statement?

Answer 5

Retained earnings, net income, dividends, new retained earnings

Question 6

What goes on the balance sheet?

Answer 6

Assets, liabilites, stockholders equity, total of liabilities and stockholders equity.

Question 7

how to find total liabilities and stockholders equity

Answer 7

add total liabilites and stockholders equity.