Answer:
Ms. Woods is using the better procedure.
Explanation:
Although is not necessary to prepare a balance sheet and an income statement daily, they should be prepared as often as feasibly possible anyway, because both financial statements provide crucial information to take decisions.
The balance sheet provides a snapshot of the assets, liabilities and equity of the firm, while the income statement provides a more fluid picture of what the firm has earned in the form or revenue, and lost in the form of expenses, over a specific period of time.
