Which is the first financial statement that should be prepared after the adjusted trial balance has been prepared?
A)Balance Sheet
B)Income Statement
C)Statement of Cash Flows
D)Statement of Retained Earnings

Question

Quizplus · Accepted Answer

The first financial statement prepared is the income statement.The amount of net income (or loss)from that statement is then transferred to the statement of retained earnings.The ending amount of Retained Earnings from that statement is then transferred to the balance sheet.

Which Is the First Financial Statement That Should Be Prepared