Which of the following is prepared first?
A) Balance Sheet
B) Income Statement
C) Statement of Owner's Equity
D) Trial Balance

Question

Quizplus · Accepted Answer

The Trial Balance is prepared first as it summarizes all ledger accounts' balances at a point in time, ensuring that total debits equal total credits. This step is crucial before preparing financial statements like the Income Statement, Statement of Owner's Equity, and Balance Sheet.

Which of the Following Is Prepared First