The income statement should be prepared a. after the retained earnings statement and before the balance sheet b. after the retained earnings statement and balance sheet c. before the retained earnings statement and balance sheet d. after the balance sheet and before the retained earnings statement

Question

Business

Jayda

11 December, 08:08

The income statement should be prepared a. after the retained earnings statement and before the balance sheet b. after the retained earnings statement and balance sheet c. before the retained earnings statement and balance sheet d. after the balance sheet and before the retained earnings statement

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Answers (1)

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Kane Wheeler · Answer 1

The correct option is C

Explanation:

Income statement is the one which states the core financial statements of the company which shows the profit and loss. And the profit and loss statement states the ability of the company for generating sales, create profits and manage expense.

It is that statement which to be prepared first, as in prepared before the retained earnings statement and the balance sheet statement.