Question 2 of 6.

Which of the following statements best describes the relationship between the income statement and the balance sheet?

The net income at the end of the year will become part of retained earnings.

The gross income at the end of the year will become part of retained earnings.

The net income at the end of the year will become part of the "owners contribution" account.

The net income at the end of the year will become part of the "loans from owner/shareholder" account.