The order the financial statements are prepared is as follows:
A) statement of owner's equity, income statement, balance sheet
B) income statement, balance sheet, statement of owner's equity
C) income statement, statement of owner's equity, balance sheet
D) balance sheet, income statement, statement of owner's equity

Question

Quizplus · Accepted Answer

The correct order for preparing financial statements is: first, the income statement to determine the net income or loss; second, the statement of owner's equity to show changes in the owner's capital account; and third, the balance sheet to present the financial position at a point in time.

The Order the Financial Statements Are Prepared Is as Follows