Dardenelle,Inc.earned $600,000 profit during 2014.On which financial statement(s)will you find the dollar amount of the profit earned by the company?

Question

Quizplus · Accepted Answer

The income statement is the financial statement that reports the company's revenues and expenses, ultimately resulting in the net income or profit earned. The statement of retained earnings then shows how the net income from the income statement is distributed between dividend payments and retained earnings. Therefore, the dollar amount of the profit earned by the company can be found on both the income statement and the statement of retained earnings.