Asked by Jociee Anallam on Jul 01, 2024
Verified
The balance sheet should be prepared
A) before the income statement and the statement of owner's equity
B) before the income statement and after the statement of owner's equity
C) after the income statement and the statement of owner's equity
D) after the income statement and before the statement of owner's equity
Balance Sheet
A financial statement that provides a snapshot of a company’s financial position by listing assets, liabilities, and equity at a specific point in time.
Owner's Equity
The residual interest in the assets of a business after deducting liabilities, representing the ownership interest of the shareholders or owners.
- Understand the elements and the process of preparing the balance sheet and income statement using worksheet data.
Verified Answer
GC
Gabriela Castro6 days ago
Final Answer :
C
Explanation :
The income statement and statement of owner's equity show the financial performance and changes in equity of the business over a period of time. The balance sheet, on the other hand, reports the financial position of the business at a specific point in time. Therefore, it should be prepared after the income statement and the statement of owner's equity have been completed.
Learning Objectives
- Understand the elements and the process of preparing the balance sheet and income statement using worksheet data.
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