Forman, Inc.earned $600,000 profit during 2015.On which financial statements) will you find the dollar amount of the profit earned by the company?

Question

Quizplus · Accepted Answer

The dollar amount of the profit earned by the company will be found on both the income statement and the statement of retained earnings, as the income statement reports the revenue and expenses for the year, including the net income or profit, while the statement of retained earnings shows how that profit was retained or distributed to shareholders. The balance sheet reports the company's assets, liabilities, and equity, but it does not directly show the company's profit.