Information Flows Among Financial Statements in This Order

question 90

Multiple Choice

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 statement of income.
• B)statement of income to statement of changes in equity to statement of comprehensive income to statement of financial position.
• C)statement of income 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 statement of income.

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Definitions:

Actor-observer Difference

A cognitive bias where people tend to attribute their own actions to external situations while attributing others' actions to their personalities or dispositions.

Bias

A tendency to lean in a certain direction, often unfairly, in thought or decision, usually leading to a prejudiced outcome.

Halo Effect

A cognitive bias where an impression created in one area influences opinion in another area.

Similar-to-me Effect

The tendency to prefer individuals who are perceived to be similar to oneself in terms of attitudes, beliefs, and backgrounds.