Which of the following represents the proper sequence for preparing the financial statements.

Question

Quizplus · Accepted Answer

The proper sequence for preparing the financial statements is income statement, statement of owner's equity, and balance sheet. The income statement summarizes the company's revenue and expenses for a period of time, the statement of owner's equity provides information about the changes in the owner's equity during that same period, and the balance sheet summarizes the company's assets, liabilities, and equity at a specific point in time. Therefore, the correct order is C) Income statement, statement of owner's equity, balance sheet.

Which of the Following Represents the Proper Sequence for Preparing