Retained Earnings links the Balance Sheet with which of the following important financial documents? A. Income Tax

B. Free cash flow statement

C. Statement of equity

C. Statement of equity

Explanation:

A statement of equity reports changes in the owner's equity structure or composition.  Equity is the owners' claim in the business. It is composed of the capital contributed by owners, borrowed funds, and retained earnings.

The statement or equity, also known as the statement of retained earnings, is prepared at the end of every financial year together with the other financial statements. It shows the changes that have occurred to the equity account in the financial period under review. The Equity statements report how profits, dividends, withdrawals,  the inflow of equity have affected equity.

answer; signaling;

answer the amount a seller is paid minus the cost of production;