Question

Net income (loss) appears in which two financial statements?A. Balance sheet and income statement.B. Income statement and statement of stockholders' equity.C. Statement of stockholders' equity and balance sheet.D. Net income appears in only one financialstatement.

Answer 1

Answer: Option B

Explanation: Net income refers to the amount of revenue that a company is left with after recognizing all the expenses incurred to generate those revenues.

The revenue and expenses are recorded on the income statement and the resulting outcome is the net income.

Similarly, as the net income is the income for shareholders of the company. Thus, it is shown in the stockholders equity statement also.