Question

Which financial statement is prepared first

A) Balance sheet

B) Income statement

C) Retained earnings statement

D) Statement of cash flows

Answer 1

The income statement is prepared first and shows a company's revenue and expenses over a specific period of time.

Step-by-step explanation:

The financial statement that is prepared first is the Income statement. The income statement shows a company's revenue and expenses over a specific period of time, such as a month or a year. It provides information about the company's profitability and helps to determine the net income or loss.