Which of the Financial Statements Is Prepared First from the Worksheet

question 97

Multiple Choice

Which of the financial statements is prepared first from the worksheet?

• A)Balance sheet
• B)Income statement
• C)Statement of owner's equity
• D)None of these answers is correct.

---

Definitions:

Variable Cost

Costs that vary directly with the level of production or sales volume, such as raw materials and labor.

Fixed Cost

Expenses that do not change in proportion to the level of production or business activity.

Mixed Cost

A cost that contains both variable and fixed cost elements, changing in total with activity level but not proportionately.

Manufacturing Cost

The total cost incurred by a company to produce goods, including direct materials, direct labor, and manufacturing overhead expenses.