The Financial Statements Should Be Prepared in What Order

question 5

Multiple Choice

The financial statements should be prepared in what order?

• A)Income statement, statement of owner's equity, balance sheet, statement of cash flows
• B)Statement of owner's equity, balance sheet, income statement, statement of cash flows
• C)Balance sheet, statement of owner's equity, income statement, statement of cash flows
• D)Balance sheet, income statement, statement of owner's equity, statement of cash flows

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Definitions:

Par Common Stock

Par Common Stock refers to the nominal or face value assigned to common stock shares by the issuing company.

Noncumulative Preferred Stock

A type of preferred stock where dividends not paid in one period do not accumulate or have to be paid in future periods.

Noncumulative Preferred Stock

A type of preferred stock where missed dividend payments are not required to be paid to the shareholders in the future.

Par Value

The face value of a bond or the stock value stated in the corporate charter, which is the minimum legal capital per share.