Four Financial Statements Are Usually Prepared for a Business

question 199

Multiple Choice

Four financial statements are usually prepared for a business. The statement of cash flows is usually prepared last. The statement of owner's equity (OE) , the balance sheet (B) , and the income statement (I) are prepared in a certain order to obtain information needed for the next statement. In what order are these three statements prepared?

• A) I,OE, B
• B) B, I, OE
• C) OE, I, B
• D) B,OE, I

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Definitions:

Vision

The ability to interpret the surrounding environment using light in the visible spectrum reflected by the objects in the environment.

Hearing

Hearing is the ability to perceive sound by detecting vibrations through an organ such as the ear.

Proximal Stimulus

The stimulus registered by the sensory receptors (e.g., the pattern of light hitting the retina), as opposed to the actual object or event in the external world.

Information Processing

A cognitive approach that likens the mind to a computer, focusing on how people process, store, and retrieve information.