Why Does an Accountant Prepare the Income Statement First

question 33

Multiple Choice

Why does an accountant prepare the income statement first?

• A) Net income must be computed first to properly complete the other financial statements.
• B) It is easier to adjust income statement accounts first than it is to adjust balance sheet accounts.
• C) Management, being profit oriented, is more interested in the company's net income than in the assets the company owns and the debts it owes.
• D) There is no particular order in which financial statements must be prepared.

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