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:

Special Assessment

A charge levied by local governments on property owners for improvements that benefit their properties, such as sidewalks or sewers.

Government-Wide Financial Statements

Comprehensive financial reports that provide an overview of a government's net position and financial activities, differentiating between governmental and business-type activities.

Intra-Activity Transactions

Transactions that occur between divisions within the same company, affecting only internal accounts without impacting the company's financial position to external parties.

GASB Concepts Statement No. 1

A framework provided by the Governmental Accounting Standards Board outlining objectives and concepts for general purpose external financial reporting by state and local governments.