Net income on the income statement will always be greater than net income on the statement of changes in shareholders' equity.

Question

Quizplus · Accepted Answer

Net income on the statement of changes in shareholders' equity is calculated after adjusting for changes in equity accounts such as dividends and stock repurchases, which may reduce net income. Therefore, net income on the income statement could be greater or less than net income on the statement of changes in shareholders' equity depending on these adjustments.

Net Income on the Income Statement Will Always Be Greater