The preparation of financial statements is the third activity in the general ledger system.To properly complete the accounting cycle,financial statements are prepared in a certain sequence.Which statement is prepared last in the sequence?
A)the adjusted trial balance
B)the income statement
C)the balance sheet
D)the statement of cash flows

Question

Quizplus · Accepted Answer

The statement of cash flows is prepared last because it requires information from both the income statement and the balance sheet to show how cash is generated and used during the period.

The Preparation of Financial Statements Is the Third Activity in the General