Which of the Following Financial Statements Reports Expenses in Decreasing

question 64

Multiple Choice

Which of the following financial statements reports expenses in decreasing order of their amounts, with the largest expense first?

• A)Statement of changes in equity
• B)Cash flow statement
• C)Balance sheet
• D)Income statement

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Definitions:

Legal Services

Professional services offered by qualified attorneys or lawyers that include legal advice, representation in court, and other activities related to the practice of law.

Accumulated Depreciation

The cumulative amount of depreciation expense recorded for an asset from the time of its acquisition.

Contra Asset

An account on a company's balance sheet that reduces the value of a related asset, such as accumulated depreciation.

Expense Account

An account that records the costs incurred by a business in the process of earning revenue, part of the company's income statement.