The income statement should be prepared
A)before the statement of stockholder's equity and balance sheet
B)after the statement of stockholder's equity and before the balance sheet
C)after the statement of stockholder's equity and balance sheet
D)after the balance sheet and before the statement of stockholder's equity

Question

Quizplus · Accepted Answer

The income statement is prepared first because it provides the net income or loss, which is then used to prepare the statement of stockholder's equity, followed by the balance sheet.

The Income Statement Should Be Prepared