The relationship between the balance sheet and income statement is that the profit of the business shown in the income statement, belongs to the owners and this is shown by a movement in equity between the opening and closing balance sheets of the business.
Relationship Between Balance Sheet and Income Statement November 6th, 2016Team
Owners Equity is that part of your business finance which is provided by the owners. Owners Equity includes two main components Capital which is invested as cash or cash equivalents by the owners as acapital introduction and Reserves which represent mainly profits of the business which have not been distributed to the owners.
Owners Equity, Capital and Retained Earnings January 31st, 2017Team