The balance sheet is prepared first because if it balances,all the accounting information is correct and can be used to prepare the other financial statements.

Question

Quizplus · Accepted Answer

The balance sheet is not prepared first; typically, the income statement is prepared before the balance sheet because the net income or loss figure from the income statement is used to help prepare the balance sheet by adjusting the owner's equity section.

The Balance Sheet Is Prepared First Because If It Balances,all