Comments on: Financial Statements - Balance Sheet http://www.accountingunplugged.com/2008/09/08/financial-statements-balance-sheet/ The System Behind the Software Wed, 10 Mar 2010 17:33:12 +0000 http://wordpress.org/?v=2.6.5 By: admin http://www.accountingunplugged.com/2008/09/08/financial-statements-balance-sheet/#comment-1130 admin Wed, 22 Apr 2009 20:56:26 +0000 http://accountingetc.wordpress.com/?p=508#comment-1130 The separation of net income from retained earnings provides important information. Net Income is the result of operations for the current year and retained earnings is the result of operations (less owner distributions) for all prior years. The balance sheet statement does balance when you include net income at the bottom and since net income is simply the difference of the debits and credits for balance sheet accounts it is easy to calculate. The separation of net income from retained earnings provides important information. Net Income is the result of operations for the current year and retained earnings is the result of operations (less owner distributions) for all prior years.

The balance sheet statement does balance when you include net income at the bottom and since net income is simply the difference of the debits and credits for balance sheet accounts it is easy to calculate.

]]> By: john http://www.accountingunplugged.com/2008/09/08/financial-statements-balance-sheet/#comment-1129 john Wed, 22 Apr 2009 19:15:57 +0000 http://accountingetc.wordpress.com/?p=508#comment-1129 Why can't we always keep retained earnings (year long) in the balance sheet that way we know that it balances and make sense? Why can’t we always keep retained earnings (year long) in the balance sheet that way we know that it balances and make sense?

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