Question
Multiple Choice Question Net income appears on the: O balance sheet. O stash flow statement. O income statement.
Ask by Griffin Powell. in the United States
Feb 02,2025
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Answer
Net income appears on the income statement.
Solution
Net income appears on the:
**O income statement.**
The income statement summarizes a company's revenues and expenses over a specific period, ultimately showing the net income or loss for that period.
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Net income is a key figure that appears on the income statement, showcasing a company's profitability over a specific period. It reflects the total revenues minus expenses, taxes, and costs, giving stakeholders a clear view of how much money the business actually earned. After calculating net income on the income statement, this figure makes its way to the balance sheet as part of retained earnings. Retained earnings are crucial for companies as they indicate how much profit is being reinvested into the business or held back to cover future expenses, making it vital for understanding a company's financial health!
