Which of the following represents the proper order of financial statement preparation?
A) Statement of cash flows,balance sheet,income statement,statement of retained earnings
B) Statement of retained earnings,income statement,statement of cash flows,balance sheet
C) Balance sheet,statement of cash flows,statement of retained earnings,income statement
D) Income statement,statement of retained earnings,balance sheet,statement of cash flows

Question

Quizplus · Accepted Answer

The proper order is: Income Statement (to determine net income), Statement of Retained Earnings (to update retained earnings with net income), Balance Sheet (to show financial position), and Statement of Cash Flows (to show cash inflows and outflows).

Which of the Following Represents the Proper Order of Financial