Which of the Following Is the Correct Order for Preparing

question 67

Multiple Choice

Which of the following is the correct order for preparing financial statements?

• A) Income statement, Statement of cash flows, Retained earnings statement, Balance sheet
• B) Retained earnings statement, Income statement, Statement of cash flows, Balance sheet
• C) Statement of cash flows, Retained earnings statement, Balance sheet, Income statement
• D) Income statement, Retained earnings statement, Balance sheet, Statement of cash flows

---

Definitions:

Modus Ponens (MP)

A logical reasoning pattern that asserts if a given premise is true, then the consequent logically follows; structured as "If P, then Q. P, therefore Q."

Modus Tollens (MT)

A form of logical argument where the antecedent is denied after deriving an absurdity or contradiction from its assumption, typically structured as "If P, then Q. Not Q, therefore not P."

Atomic Sentences

The simplest type of sentence that cannot be broken down into smaller sentences and still convey the intended meaning.

Truth Table

A table used in logic to determine the truth or falsity of all possible combinations of logical expressions.