The basic financial statements are listed below:

In which of the following sequences does the accountant ordinarily prepare the statements?
A) 1, 4, 3, 2
B) 2, 1, 3, 4
C) 3, 2, 1, 4
D) 3, 2, 4, 1

Question

The basic financial statements are listed below:

In which of the following sequences does the accountant ordinarily prepare the statements?
A) 1, 4, 3, 2 
B) 2, 1, 3, 4 
C) 3, 2, 1, 4 
D) 3, 2, 4, 1

Quizplus · Accepted Answer

The accountant ordinarily prepares the financial statements in the following sequence:
1) Income statement (Statement of Operations)
2) Statement of retained earnings
3) Balance sheet (Statement of Financial Position)
4) Statement of cash flows

Therefore, the correct sequence is 3, 2, 1, 4, which is option C.

The Basic Financial Statements Are Listed Below