Which financial statement is typically prepared first?
A)Balance sheet.
B)Income statement.
C)Statement of stockholders' equity.
D)Statement of cash flows.

Question

Quizplus · Accepted Answer

The income statement is typically prepared first, as it shows the company's financial performance over a specified period of time (usually one year). The other financial statements, such as the balance sheet, statement of stockholders' equity, and statement of cash flows, are prepared using information from the income statement.

Which Financial Statement Is Typically Prepared First