Financial statements are typically prepared in the following order:
A)Balance sheet,statement of owner's equity,income statement.
B)Statement of owner's equity,balance sheet,income statement.
C)Income statement,balance sheet,statement of owner's equity.
D)Income statement,statement of owner's equity,balance sheet.
E)Balance sheet,income statement,statement of owner's equity.

Question

Quizplus · Accepted Answer

The income statement is prepared first to determine net income, which is then used in the statement of owner's equity. The ending owner's equity is then reported on the balance sheet.

Financial Statements Are Typically Prepared in the Following Order