The Income Statement is prepared first because the Net Income amount is a line item on the Balance Sheet.

Name: The Income Statement is prepared first because the Net Income amount is a line item on the Balance Sheet.
Brand: Quizplus
Rating: 4.9 (50 reviews)

Question

Quizplus · Accepted Answer

The Balance Sheet is prepared first because it shows the company's financial position at a specific point in time, and the Net Income amount from the Income Statement is used to calculate the Retained Earnings line item on the Balance Sheet.

The Income Statement Is Prepared First Because the Net Income