Author Question: Net income flows from ________. A) the income statement to the statement of changes in ... (Read 104 times)

sdfghj · **on:** Jul 5, 2018

Net income flows from ________.

A) the income statement to the statement of changes in shareholders' equity
B) the income statement to the balance sheet
C) the balance sheet to the statement of cash flows
D) the statement of cash flows to the income statement

Question 2

Under a perpetual inventory system
a. accounting records continuously disclose the amount of inventory
b. increases in inventory resulting from purchases are debited to Purchases
c. there is no need for a year-end physical count
d. the purchase returns and allowances account is credited when goods are returned to vendors