Profit on the income statement results in an increase in equity on the balance sheet due to profitable operating activities over a period of time.

Name: Profit on the income statement results in an increase in equity on the balance sheet due to profitable operating activities over a period of time.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is true as profit is added to the equity section of the balance sheet, which represents the owners' portion of the company's assets.

Profit on the Income Statement Results in an Increase in Equity