The basic financial statements are listed below:
(1)Balance sheet
(2)Statement of retained earnings
(3)Income statement
(4)Statement of cash flows
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

Quizplus · Accepted Answer

The accountant typically prepares the income statement first, followed by the statement of retained earnings, then the balance sheet, and finally the statement of cash flows.

The Basic Financial Statements Are Listed Below