The equation that describes the relationship between the balance sheet and the income statement through the Retained Earnings account is as follows:
Retained Earnings (beginning) + Net Income - Dividends = Retained Earnings (ending)

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This equation, known as the Retained Earnings equation, is a fundamental concept in accounting and is used to link the balance sheet and income statement. It shows how the net income and dividends affect the retained earnings balance from the beginning of the period to the end of the period.

The Equation That Describes the Relationship Between the Balance Sheet