Why Should the Income Statement Be Prepared First
In order to have an accurate income statement accurate bookkeeping is necessary. The statement of cash flows should be prepared first because it determines the sources of cash. Order Of Preparing Financial Statements The income statement does not have to. . The income statement lists all of a companys revenues and expenses as it relates to income-generating activities. View the full answer. The ending retained earnings balance then flows into the balance sheet. It shows any capital the owner put into the business any withdrawals made as a salary and the net income or net loss from the current period. That information is then used in preparing the income statementb. -The statement of cash flows should be prepared first because it determines the sources of cash. The statement of cash flows should be prepared first because it determines the sources of cash. The income statement can be prepared in one of. None...