The first step in preparing a projected statements is to
A) prepare the projected balance sheet.
B) take an inventory of goods.
C) estimate increases in debt.
D) prepare the projected income statement.
E) calculate the projected net income

Question

Quizplus · Accepted Answer

The first step in preparing projected statements is to prepare the projected income statement. This is because the income statement provides information on expected revenue and expenses, which are necessary inputs for preparing the projected balance sheet and estimating changes in debt.

The First Step in Preparing a Projected Statements Is to