Net income from the income statement flows directly into which other financial statement?

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Multiple choice — select the best answer

AStatement of retained earnings
BBalance sheet only
CStatement of cash flows only
DPro forma balance sheet

✓ Correct answer: A. Statement of retained earnings Net income from the income statement is added to beginning retained earnings on the statement of retained earnings (or statement of owner's equity) to calculate ending retained earnings.

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Net income from the income statement flows directly into which other financial statement?

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