missfabulous
contestada

which of the following statements are true
a. the balance sheet should be prepared before the income statement .
b. the income statement should be prepared before the balance sheet
c.the balance sheet and the income statenent should be prepared simultaneously.
d. the order in which the balance sheet and the income statement are prepared is irrelevent ​

Respuesta :

kirabowen15
b) The income statement should be prepared before the balance sheet.

My reason for saying this is that when calculating the working capital on the balance sheet, we are going to have to add the net income/profit from the income statement. Hence I think the income statement must be prepared before the balance sheet.

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