Finance Analyst Question:

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Tell us how is the income statement linked to the balance sheet?

Finance Analyst Interview Question
Finance Analyst Interview Question

Answer:

Net income flows into retained earnings.

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Explain what are your long term career goals?Explain me why do capital expenditures increase assets (PP&E), while other cash outflows, like paying salary, taxes, etc., do not create any asset, and instead instantly create an expense on the income statement that reduces equity via retained earnings?