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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 787 |
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They also can be used to determine income tax liability.
Income statements, along with balance sheets, are the most basic elements required by potential lenders, such as banks, investors, and vendors. They will use the financial reporting contained therein to determine credit limits.
STATEMENT OF OWNERS' EQUITY (STATEMENT OF RETAINED EARNINGS)
Retained earnings appear on the balance sheet and most commonly are influenced by income and dividends...
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The Statement of Retained Earnings therefore uses information from the Income Statement and provides information to the Balance Sheet.
The Statement of Retained Earnings is a summary of the changes that occurred in the owner's equity during a specific time period, such as a month or a year. Increases to owner's equity arise from investments by the owner and from net income earned during the period...
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