Asked by Chris Huynh on May 20, 2024
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Four financial statements are usually prepared for a business. The statement of cash flows is usually prepared last. The statement of owner's equity (OE) , the balance sheet (B) , and the income statement (I) are prepared in a certain order to obtain information needed for the next statement. In what order are these three statements prepared?
A) I,OE, B
B) B, I, OE
C) OE, I, B
D) B,OE, I
Statement Order
The sequence in which financial statements are prepared and presented, typically starting with the income statement.
Income Statement
A financial document that provides an overview of a company's revenues, expenses, and profits over a specific period of time.
Balance Sheet
A financial overview indicating a firm's holdings, debts, and shareholders' net value on a specific day.
- Comprehend the development and importance of general-purpose financial statements.
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Learning Objectives
- Comprehend the development and importance of general-purpose financial statements.
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