In What Order Are Financial Statements Generally Prepared

question 119

Multiple Choice

In what order are financial statements generally prepared?

• A) income statement, balance sheet, and statement of retained earnings
• B) income statement, statement of retained earnings, and balance sheet
• C) statement of retained earnings, income statement, and balance sheet
• D) balance sheet, statement of retained earnings, and income statement

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Definitions:

Annual Return

The percentage change in investment value from one year to the next, including any dividends or interest, indicating the investment’s gain or loss.

Dividend

A portion of a company's earnings distributed to its shareholders, typically in the form of cash or additional stock.

Dual-Class Shares

A corporate structure with two or more classes of stock, each with differing voting rights, dividends, or other attributes.

Common Shares

Equity securities that represent ownership in a corporation, providing voting rights and a share in the company’s profits through dividends.