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      Question

      Which among the following items link the Income

      Statement and the Balance Sheet
      A Net Profit/ Loss Correct Answer Incorrect Answer
      B Capital Correct Answer Incorrect Answer
      C Net Liabilities Correct Answer Incorrect Answer
      D Net Assets Correct Answer Incorrect Answer

      Solution

      Answer – Net profit/ loss which is the net result of the Income Statement gets added in the Capital Account which gets reflected under the liabilities section of the Balance Sheet.

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