When Preparing the Financial Statements,why Is the Income Statement Prepared

question 151

Multiple Choice

When preparing the financial statements,why is the income statement prepared first?

• A)The income statement is used to prepare the balance sheet.
• B)The income statement is the easiest statement to prepare.
• C)The income statement is the most important statement to investors and creditors.
• D)Net income or net loss from the income statement is used for the Statement of Retained Earnings.

---

Definitions:

Spotted Owls

A species of owl known for its distinctive spots, native to North America, and considered an indicator of old-growth forest health.

SARA

An acronym standing for the Species at Risk Act, a Canadian law enacted to provide for the recovery of wildlife species that are at risk of extinction.

Captive Breeding

A conservation strategy involving the breeding of endangered species in controlled environments, such as wildlife reserves or zoos, with the aim of reintroducing them to their natural habitats.

Extinction Spasm

Extinction Spasm is a rapid increase in the rate of extinction experienced by species within a relatively short geological period, often due to human activities.