The financial statement that is prepared first is
A) up to the accountant.
B) the income statement.
C) the balance sheet.
D) the statement of owner's equity.

Question

Quizplus · Accepted Answer

The income statement is usually prepared first because it shows the revenues and expenses over a specific period of time and provides a snapshot of the company's profitability. This statement helps guide decision-making and is used to prepare the other financial statements.

The Financial Statement That Is Prepared First Is