Information flows among financial statements in this order:
A) statement of financial position to statement of changes in equity to statement of comprehensive income to income statement.
B) income statement to statement of changes in equity to statement of comprehensive income to statement of financial position.
C) income statement to statement of comprehensive income to statement of changes in equity to statement of financial position.
D) statement of changes in equity to statement of financial position to statement of comprehensive income to income statement.

Question

Quizplus · Accepted Answer

The income statement provides the net income, which is then used in the statement of comprehensive income. The comprehensive income is then used in the statement of changes in equity, which ultimately affects the statement of financial position.

Information Flows Among Financial Statements in This Order