Which of the following is the correct order for preparing the financial statements listed?
A)Balance sheet,statement of stockholders' equity,and income statement.
B)Balance sheet,income statement,and statement of stockholders' equity.
C)Statement of stockholders' equity,income statement,and balance sheet.
D)Income statement,statement of stockholders' equity,and balance sheet.

Question

Quizplus · Accepted Answer

The correct order for preparing financial statements is to start with the income statement, which shows the company's revenues and expenses. Next is the statement of stockholders' equity, which shows changes in the equity portion of the balance sheet. Finally, the balance sheet is prepared, which presents the company's financial position at a point in time. This order ensures that the necessary information from the income statement and statement of stockholders' equity is available to accurately prepare the balance sheet.

Which of the Following Is the Correct Order for Preparing