Which of the following is the correct order of preparation of financial statements?

Question

Quizplus · Accepted Answer

The correct order is: income statement, statement of retained earnings, balance sheet, and then statement of cash flows. This sequence follows the logical flow of financial information, where the income statement results affect the retained earnings, which in turn affect the balance sheet, and finally, the cash flows are derived from these statements.

Which of the Following Is the Correct Order of Preparation