Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 44 - No. 13)
Which of the following is true regarding the relationship between the balance sheet and the income statement?
The income statement provides information used to prepare the balance sheet.
The balance sheet provides information used to prepare the income statement.
They are completely unrelated.
They are the same financial statement.
Explanation
The income statement reports the results of operations over a period, which is used in preparing the balance sheet.
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