The Financial Statements Should Be Prepared in What Order

question 89

Multiple Choice

The financial statements should be prepared in what order?

• A)Statement of changes in equity, balance sheet, income statement, cash flow statement
• B)Balance sheet, income statement, statement of changes in equity, cash flow statement
• C)Income statement, statement of changes in equity, balance sheet, cash flow statement
• D)Balance sheet, statement of changes in equity, income statement, cash flow statement

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Definitions:

Information Content Effect

A market phenomenon where stock prices adjust in response to the news contained in a company announcement, suggesting the news has value for investors’ decisions.

Dividend Payout

The segment of a company's income that is given to shareholders in dividends.

Residual Dividend

A policy whereby a company pays dividends to its shareholders from the residual or leftover equity once all operational and capital expenditure needs are met.

Information Content

The value or significance of a piece of information, especially in terms of its utility in influencing decisions or behaviors in financial markets.