Which financial statement is prepared first?
A)Statement of financial position
B)Income statement
C)Statement of changes in equity
D)Statement of cash flows

Question

Quizplus · Accepted Answer

The income statement is prepared first as it provides information on a company's revenues and expenses over a specific period of time, usually a month or year. This information is crucial in determining a company's profitability and to provide a basis for making informed decisions. The statement of financial position, statement of changes in equity, and statement of cash flows are prepared after the income statement.

Which Financial Statement Is Prepared First