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which of the following statements best describes the relationship between the income statement and the balance...

which of the following statements best describes the relationship between the income statement and the balance sheet?

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Answer #1

The relationship between the income statement and balance sheet is the net income of a peroid. It is the profit of the business which is shown in the income statement belongs to the owners and this will be shown in the balance sheet of the business. Net income or profit for the peroid increases the ending balance of retained earning. And the retained earning will be shown in the balance sheet.

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