Which financial statement is prepared first?
A) Statement of Owner's Equity
B) Balance Sheet
C) Income Statement
D) None of the above

Question

Quizplus · Accepted Answer

The Income Statement is typically prepared first as it shows the company's revenue and expenses over a specific period of time, usually a month or a year. The Statement of Owner's Equity and Balance Sheet are prepared after the Income Statement as they require information from the Income Statement.

Which Financial Statement Is Prepared First