In what order are the following financial statements prepared: (1)balance sheet, (2)income statement,and (3)statement of stockholders' equity?
A)1,2,3.
B)3,2,1.
C)1,3,2.
D)2,3,1.

Question

Quizplus · Accepted Answer

The correct order of preparing financial statements is first the income statement, then the statement of stockholders' equity, and finally the balance sheet. The income statement provides the net income or loss, which is used in the statement of stockholders' equity. The ending balance of the statement of stockholders' equity is then used in the balance sheet.

In What Order Are the Following Financial Statements Prepared: (1)balance