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ACCOUNTING


Question:


Which of the following statements is incorrect

The statement of changes in equity is linked to the balance sheet

The balance sheet summarizes revenues and expenses by showing only account balances for share capital and retained earnings.

Revenues and expenses are reported on the income statement to show the details of net income. Because net income causes equity to change, it is then reported on the statement of changes in equity.

The income statement is linked to the statement of changes in equity