How is the balance sheet linked to the other financial statements?
a)The amount of retained earnings reported on the balance sheet is equal to net income.
b)Retained earnings is added to total assets and reported on the balance sheet.
c)Net income increases retained earnings on the statement of retained earnings, which ultimately increases retained earnings on the balance sheet.
d)There is no link between the balance sheet and other statements, as each contains different accounts and provides different information.
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