Final answer:
ATV Company should prepare a balance sheet and income statement at the end of its first month, but ideally, they should compile all major financial statements for a complete financial overview. Option a
Step-by-step explanation:
t the end of its first month of operations, ATV Company should prepare a series of financial statements. The four main types of financial statements that are considered essential for businesses are: the balance sheet, which displays the company's assets, liabilities, and equity at a specific point in time.
the income statement (also known as the profit and loss statement), which shows revenue, expenses, and profits over a period of time; the cash flow statement, which outlines the cash inflows and outflows from operations, investing, and financing; and the statement of retained earnings, which shows changes in retained earnings over the reporting period.
Therefore, the answer to the question is a) Balance sheet and income statement, but it is best practice to prepare all main financial statements to have a comprehensive understanding of the company's financial position. option a