Question

If you had the opportunity to improve either the income statement or the balance sheet of a business entity, which one will you focus on

Answer 1

For organization we can first prepare the income statement than its balance sheet. Income statement will show the income and expenses of any organization and balance sheet will show consolidated balance available in assets and liabilities of any organization.

Balance sheets will depend on the income statement for net income after taxes, Payable of Account Payable, Purchase of Assets of the organization and cash flow of any organization. So it means balance sheet of any organization is depend on the income statement and if the income statement is strong than possibility of good balance sheet is more.

It means if the any organization have good income statement than balance sheet of that company turn automatic in Good. condition.  

So if we got the opportunity to improve either the income statement or balance sheet than we can improve first income statement of that organization.