The statement of net income is the first financial statement prepared.

Question

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The statement of net income is the first financial statement prepared because it provides a summary of the company's financial performance over a period of time. This information is used to calculate the company's net income, which is the difference between its revenues and expenses. The statement of net income is also used to calculate the company's earnings per share, which is a measure of the company's profitability.

The Statement of Net Income Is the First Financial Statement