What is the first financial statement prepared?
Understand the Problem
The question is asking about the initial financial statement that is typically prepared in the accounting cycle, which is the income statement.
Answer
Income Statement
The final answer is an Income Statement
Answer for screen readers
The final answer is an Income Statement
More Information
The income statement is prepared first because it provides essential information on revenues and expenses, which is necessary to prepare other financial statements like the balance sheet and cash flow statement.
Sources
- Which Financial Statement Is Prepared First? - Patriot Software - patriotsoftware.com
- Which Financial Statement Is Prepared First & Why? - EcomBalance - ecombalance.com
- Accounting Financial Statements [PDF] - germanna.edu
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