How is the balance sheet linked to the other financial statements?

Answers

There is no link between the balance sheet and other statements, as each contains different accounts and provides different information.

The amount of assets reported on the balance sheet is equal to net income.

Dividends decrease stockholders' equity on the statement of stockholders' equity, which ultimately decreases stockholders' equity on the balance sheet.

Liabilities is added to total assets and reported on the balance sheet.