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What is the reason for adding the net income for the year to the balance sheet?
Wiki User
∙ 15y ago
Adding net income balances out the equity account, which will generally be reflected as the beginning balance of equity (prior year ending balance) before you add net income. Balancing the equity account (Beg Bal of Equity + Net Income/(Loss) = End Bal of Equity) is necessary in order to balance the Balance Sheet, since Assets = Liabilities + Equity.
Wiki User
∙ 15y ago
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Are the income a balance sheet account?
Income is an income statement account and shown in income statement and not a balance sheet account.
Is interest on fixed deposit located on income statement or balance sheet?
both.. balance sheet under liquid asset..income statement under inflow/income..
Allowance for doubtful accounts is reported in the a balance sheet or a income sheet?
balance sheet
Are accounts payable on the income statement and balance sheet?
yes accounts are payable on the income statement and balance sheet.
How income statement affect balancesheet?
Income statement and balance sheet are both related to each other as transactions effect income statement and balance sheet as well and net income or loss from income statement is also part of balance sheet.
Are exploration expenses located on a balance sheet or income statement?
balance sheet
Where does an escrow payable appear on a balance sheet or a income statement?
balance sheet
What is balance sheet footing?
Adding debits and credits of balance sheet including capital
Where does stationary go on a balance sheet in business studies?
Stationery, as an accounting item, does not appear on a business Balance Sheet. The Balance Sheet is reserved for assets and liabilities. The Income Statement reflects income and expenses and because Stationery is an expense item it will appear on the Income Statement and not the Balance Sheet.
Where does interest go on balance sheet?
Interest is part of income statement and shown in income statement and not part of balance sheet.
Is discount received balance sheet item or not?
It's only treated in income statement, not balance sheet.
Miscellaneous expenses in the balance sheet?
Miscellaneous expenses are part of income statement and not part of balance sheet and not shown under balance sheet.
