Which of the following statements should be prepared before the balance sheet is prepared?
A)statement of owner's equity
B)statement of financial position
C)income statement
D)statement of owner's equity and income statement

Question

Quizplus · Accepted Answer

The statement of owner's equity and the income statement should be prepared before the balance sheet. The income statement provides the net income or loss, which is needed to update the owner's equity in the statement of owner's equity. The updated owner's equity is then reported on the balance sheet.

Which of the Following Statements Should Be Prepared Before the Balance