Which financial statement must be prepared before others can be completed?
A) Statement of cash flows.
B) Balance sheet.
C) Income statement.
D) Statement of financial position.

Question

Quizplus · Accepted Answer

The income statement must be prepared first because it provides the net income or loss figure, which is essential for preparing the statement of cash flows and the retained earnings statement, components of the balance sheet.

Which Financial Statement Must Be Prepared Before Others Can Be