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Any Dollar a Business Makes as Net Income Will Flow

Question 3

Multiple Choice

Any dollar a business makes as net income will flow


A) from the income statement as profit to the cash flow statement to add into the retained earnings or equity account.
B) from the balance sheet as profit to the income statement as retained earnings.
C) from the income statement as profit to the balance sheet to add into the retained earnings or equity account.
D) from the cash flow statement to the retained earnings statement as shareholder's equity.

Correct Answer:

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