Which projected financial statement should be prepared first?
A) the statement of cash flows
B) the statement of retained earnings
C) the statement of income
D) the statement of financial position

Question

Quizplus · Accepted Answer

The statement of income should be prepared first because it provides the net income or loss for the period, which is needed to prepare the statement of retained earnings and the statement of cash flows.

Which Projected Financial Statement Should Be Prepared First