Undistributed earnings in the income statement and statement of profit and loss = undistributed earnings in the balance sheet
Difference between ending balance and beginning balance of cash and its equivalents in the balance sheet = net increase in cash and its equivalents in the statement of cash flows
Net sales in the income statement - Increase in accounts receivable (notes) in the balance sheet + increase in accounts receivable in advance = cash received from sales of goods and services in the statement of cash flows
Increase (decrease) in current assets and current liabilities other than cash and its equivalents in the statement of assets and liabilities in the statement of assets and liabilities in the balance sheet = decrease (increase) in each of the relevant line items in the statement of cash flows
The total of each of the items of the assets in the account-type balance sheet equals the total of the liabilities and owners' equity. The sum of each item means that the left and right sides of the balance sheet balance.
The account-based balance sheet reflects the intrinsic relationship between assets, liabilities, and owners' equity, i.e., "Assets = Liabilities = Owners' Equity". The balance sheet is in account form. Each item is divided into "closing balance" and "beginning balance" two columns are filled out.
Expanded Information:
Balance Sheet is the end of the book-keeping process. The balance sheet is the end of the bookkeeping process, and is the final result and statement of a collection of journal entries, postings, and trial adjustments. By its nature, a balance sheet is a comparison of the assets, liabilities, and stockholders' equity of an enterprise or a company, and it accurately reflects the status of the company's operations.
In terms of the basic components of the statement, the balance sheet mainly consists of the assets section on the left-hand side of the statement and the liabilities and shareholders' equity section on the right-hand side.
At the front end of the operation, if it is recorded in full accordance with accounting principles, and after correct journal entries or trial transfers, the total amount of the left and right side of the balance sheet will be exactly the same. And this formula is the final word is the total amount of assets = total liabilities + total shareholders' equity.