The balance sheet should be prepared before the income statement and after the retained earnings statement...

The balance sheet should be prepared

before the income statement and after the retained earnings statement

after the income statement and before the retained earnings statement

before the income statement and the retained earnings statement

after the income statement and the retained earnings statement

Expert Solution

The balance sheet should be prepared after the income statement and the retained earnings statement.

Fourth option is the correct option.

The correct sequence in the preparation of financial statement is:

- First of all income statement is prepared.

- After income statement retained earning statement is prepared.

- Finally, after retained earning statement, Balance sheet is prepared.

Net income or loss from the income statement is taken to retained earnings statement. From the retained earnings statement ending retained earnings is taken to the balance sheet.

ekkarill92 answered 2 years ago

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