Which of the following is the correct order for preparing the financial statements?
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 is to first prepare the income statement, which provides the net income needed for the statement of stockholders' equity. Then, the statement of stockholders' equity is prepared, which provides the ending equity balance needed for the balance sheet. Finally, the balance sheet is prepared.

Which of the Following Is the Correct Order for Preparing