Which financial statement must be prepared before the others?
A)Statement of cash flows
B)Income statement
C)Balance sheet
D)Statement of retained earnings

Name: Which financial statement must be prepared before the others? A)Statement of cash flows B)Income statement C)Balance sheet D)Statement of retained earnings
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Question

Quizplus · Accepted Answer

The income statement is prepared first because it provides the net income or loss, which is needed to prepare the statement of retained earnings.

Which Financial Statement Must Be Prepared Before the Others