BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The net income figure in the income statement is added to the retained earnings line item in the balance sheet, which alters the amount of equity listed on the balance sheet. The net income figure also appears as a line item in the cash flows from operating activities section of the statement of cash flows.

Detailed explanation-2: -“The bottom line of the income statement is net income. Net income links to both the balance sheet and cash flow statement. In terms of the balance sheet, net income flows into stockholder’s equity via retained earnings.

Detailed explanation-3: -Companies often use an income statement, which typically shows all income and expenses. The net income is usually found at the bottom of the income statement. So it’s sometimes referred to as the bottom line.

Detailed explanation-4: -The statement of owner’s equity is prepared after the income statement. It shows the beginning and ending owner’s equity balances and the items affecting owner’s equity during the period. These items include investments, the net income or loss from the income statement, and withdrawals.

Detailed explanation-5: -Net income is the last line item on the income statement proper. Some income statements, however, will have a separate section at the bottom reconciling beginning retained earnings with ending retained earnings, through net income and dividends.