Question

Which one of the following financial statements is generally prepared first?
(A) Income statement
(B) Balance sheet
(C) Cash flow statement
(D) Statement of retained earnings​

Answer 1

Answer:

A)Income statement is generally prepared first

Answer 2

FINANCIAL STATEMENTS

Income statement is one of the financial statement which is prepared first.

KEY TAKEAWAYS OF INCOME STATEMENMTS:

* An income statement is a financial statement that details the income and expenses of a business. It also reveals if a firm is profitable or not over a certain time period. The income statement, together with the balance sheet and cash flow statement, assists you in determining your company's financial health.

* A profit and loss statement, a statement of operation, a statement of financial result or income, or an earnings statement are all terms for the income statement.

* An income statement aids business owners in determining if they can make money by growing sales, lowering expenditures, or doing both. It also demonstrates the efficacy of the business's strategies set at the start of a financial term.