The Statement of Owner's Equity should be prepared
A) before the income statement and after the balance sheet
B) before the income statement and balance sheet
C) after the income statement and balance sheet
D) after the income statement and before the balance sheet

Question

Quizplus · Accepted Answer

The Statement of Owner's Equity should be prepared after the income statement and before the balance sheet because it shows the changes in equity throughout the accounting period, which are reflected in the income statement, and it also presents the ending balance of equity, which is reported in the balance sheet.

The Statement of Owner's Equity Should Be Prepared