Financial statements are prepared in the following order
A)Balance sheet, statement of changes in equity, income statement.
B)Balance sheet, income statement, statement of changes in equity.
C)Statement of changes in equity, balance sheet, income statement.
D)Income statement, balance sheet, statement of changes in equity.
E)Income statement, statement of changes in equity, balance sheet.

Question

Quizplus · Accepted Answer

Financial statements are typically prepared in the order of the income statement, statement of changes in equity, and then the balance sheet. This order reflects the flow of information, where the income statement results affect the equity, which in turn affects the balance sheet.

Financial Statements Are Prepared in the Following Order