Which of the following statements best describes the relationship between the balance sheet and the income statement? -'\"'- The balance sheet shows only real accounts and the income statement shows only nominal accounts, and there is no direct connection between them. r\". At the end of the year, all nominal accounts that appear on the income statement are closed to retained earnings, which appears on the balance sheet. f\": The balance sheet show only accrual transactions and the income statement shows only cash transactions, and there is no direct connection between them. ' At the end of the year, all of the cash transactions from the income statement are recorded as accmal transactions that appear on the balance sheet