Which of the following statements should be prepared right before the balance sheet?
A) cash flow statement
B) statement of financial position
C) income statement
D) statement of retained earnings

Question

Quizplus · Accepted Answer

The statement of retained earnings should be prepared right before the balance sheet, as it shows how much of the company's earnings were retained and how much was distributed to shareholders. This information is important in calculating the company's equity, which appears as a line item on the balance sheet. The other options are not typically prepared immediately before the balance sheet, although they are all important financial statements.

Which of the Following Statements Should Be Prepared Right Before