Financial statement relationships: Financial statements are dependent on each other for financial reporting
- The income statement calculates net income or loss
- Net income is added or a net loss is deducted from retained earnings on the balance sheet at end of accounting period
- The statement of cash flows uses net income and changes in balance sheet accounts to present the cash ins and outs
- The statement of shareholders’ equity reports the balance sheet equity detail
AccountingPlay Apps
Learn Accounting Faster and Easier
Learn financial accounting, debits & credits, and business tax easier with flashcards, mobile apps, and games. Learn accounting anytime and anywhere. AccountingPlay will help you learn in a fast and fun way. Available on iOS and Android
Premium Courses
One Time Payment. Lifetime Access.
Learn more comprehensively about debits and credits, financial accounting, Excel fundamentals, business tax prep & plan, CPA tax prep, and how to start and grow your business right. Get access to all of our books, spreadsheets, academic papers, cheat sheet, audio vault, videos, and more.
Recommended Tools
One of your top priorities as a small business owner is keeping a close eye on the money you bring in and pay out, which is why it’s critical to have the right accounting software. You need a program that helps you accomplish your daily accounting tasks. Here are our best picks for tools we recommend and use.
