--- title: "Meaning & Key Takeaway of: The statement of retained earnings acts…" description: "\"“The statement of retained earnings acts as a bridge between the income statement and the balance sheet. It takes information from the income statement..." image: "https://sms4smile.com/quotes/i/bf0/mike-piper-41609_quote_the-statement-of-retained-earnings-acts_2217425.jpg" --- # The statement of retained earnings acts as a bridge… ![“The statement of retained earnings acts as a bridge between the income statement and the balance sheet. It takes information from the income statement, and it provides information to the balance sheet.” quote by Mike Piper](https://sms4smile.com/quotes/i/bf0/mike-piper-41609_quote_the-statement-of-retained-earnings-acts_2217425.jpg) [Download](https://sms4smile.com/quotes/i/bf0/mike-piper-41609_quote_the-statement-of-retained-earnings-acts_2217425.jpg) [Open image](https://sms4smile.com/quotes/i/bf0/mike-piper-41609_quote_the-statement-of-retained-earnings-acts_2217425.jpg) > ““The statement of retained earnings acts as a bridge between the income statement and the balance sheet. It takes information from the income statement, and it provides information to the balance sheet.”” [Mike Piper](https://sms4smile.com/quotes/author/mike-piper/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Retained earnings link the income statement to the balance sheet, transferring profit information. **In simple terms:** Retained earnings connect profit data between statements. Key Takeaway Use retained earnings to understand financial health. Themes finance accounting information flow Mood informative neutral Type educational technical When to use this quote - business analysis - financial reporting - investment decisions Key Concepts equity profit retention Questions to Reflect On - How do retained earnings affect cash flow? - What does a change in retained earnings indicate? A Different Perspective Misinterpretation can lead to poor financial decisions. ★ ★ ★ ★ ★ No ratings yet [Balance Sheet](https://sms4smile.com/quotes/about/balance-sheet-359532/) [Customer](https://sms4smile.com/quotes/about/customer/) [Income Statement](https://sms4smile.com/quotes/about/income-statement-1661232/) [Retained Earnings](https://sms4smile.com/quotes/about/retained-earnings-1482955/) [Statement Balance](https://sms4smile.com/quotes/about/statement-balance-4935153/) [Statement Retained](https://sms4smile.com/quotes/about/statement-retained-4935154/) ## Related quotes > [“The cash flow statement also differs from the income statement in that it shows many transactions that would not appear on the income statement.”](https://sms4smile.com/quotes/mike-piper/the-cash-flow-statement-also-differs-from-the-income-statement-in/) [Mike Piper](https://sms4smile.com/quotes/author/mike-piper/) > [Many stock options in the corporate world have worked in exactly that fashion: they have gained in value simply because management retained earnings, not…](https://sms4smile.com/quotes/warren-buffett/many-stock-options-in-the-corporate-world-have-worked-in-exactly-that/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [I think there's an awful lot of twaddle and bullshit on EVA. 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