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Relationship Between Income Statement & Balance Sheet

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18. The relationship between the income statement and the balance sheet may be described as follows:
a. The income statement explains part of the change in owners' equity between two balance sheet dates.
b. The balance sheet summarizes the change in net income occurring between successive income statements
c. The income statement summarizes the changes in cash occurring between two balance sheet dates
d. the assets shown in a balance sheet include all the revenue shown in the income statement.

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The solution answers simply what is the relationship between the income statement and balance sheet.

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In the accounting equation, owner's equity is made up of revenue and expenses. ...

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