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Where would you find the net income of a company?(5 Points)Income statementBalance sheetStatement of cash flowsRetained earnings statement

Question

Where would you find the net income of a company?

  1. Income statement
  2. Balance sheet
  3. Statement of cash flows
  4. Retained earnings statement
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Solution

To find the net income of a company, you would look at the income statement. Here's a brief overview of each option:

  1. Income Statement: This financial document summarizes revenues, costs, and expenses to show the company's profit or loss over a specific period. The net income is typically listed at the bottom of the income statement.

  2. Balance Sheet: This statement presents the company’s assets, liabilities, and equity at a particular point in time. It does not detail the net income directly.

  3. Statement of Cash Flows: This document outlines the cash inflows and outflows over a period but does not directly provide net income figures.

  4. Retained Earnings Statement: This statement shows the changes in retained earnings over a period, which is impacted by net income, but it does not explicitly state it.

Final Answer

The net income of a company can be found in the Income Statement.

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