8 lines
608 B
Markdown
8 lines
608 B
Markdown
It's the link because it takes **total comprehensive income** from the income statement and feeds it into **retained earnings** on the balance sheet. That's literally its job — bridging those two statements.
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The Statement of Cash Flows (A) is more of a standalone explanation of how cash moved during the year — it reconciles the opening and closing cash balances, but it doesn't directly link income to equity.
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Think of it this way:
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- Income Statement → **feeds into** → Statement of Changes in Equity → **feeds into** → Balance Sheet
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- That chain is how the statements connect to each otherB |