Asked by Kalie Lavery on May 12, 2024
Verified
Which of the following is prepared last?
A) Balance Sheet
B) Income Statement
C) Statement of Owner's Equity
D) Trial Balance
Statement of Owner's Equity
A financial document showing the changes in the equity of a business over a specific period, including contributions, withdrawals, and earnings.
Trial Balance
An accounting report that lists the balances of all ledgers accounts to ensure the sum of debits equals the sum of credits, used as a check on the accuracy of the postings.
- Acquire proficiency in the sequencing and crafting of financial statements.
Verified Answer
CB
Cande BurzioMay 17, 2024
Final Answer :
A
Explanation :
The Balance Sheet is prepared last because it uses information from the Income Statement and the Statement of Owner's Equity to provide a snapshot of the company's financial position at a specific point in time. The Trial Balance is prepared first to ensure that debits equal credits, followed by the Income Statement and the Statement of Owner's Equity, which then feed into the Balance Sheet.
Learning Objectives
- Acquire proficiency in the sequencing and crafting of financial statements.