Which financial statement(s)does net income appear on?

Question

Quizplus · Accepted Answer

Net income appears on the income statement as it is the result of revenues minus expenses. It also impacts the statement of cash flows using the indirect method because it is the starting point for determining cash flows from operating activities. Additionally, net income affects the statement of retained earnings by increasing it (or decreasing, in the case of a net loss). It does not appear directly on the balance sheet but affects the equity section through retained earnings.

Which Financial Statement(s)does Net Income Appear On