Which of the Following Describes the Correct Order of How

question 37

Multiple Choice

Which of the following describes the correct order of how financial statements are prepared from the information taken from the trial balance?

• A) Compute net income, Identify all revenues and expenses, Compute the ending retained earnings balance, Prepare a balance sheet
• B) Identify all revenues and expenses, Prepare a balance sheet, Compute the ending retained earnings balance, Compute net income
• C) Compute the ending retained earnings balance, Compute net income, Prepare a balance sheet, Identify all revenues and expenses.
• D) Identify all revenues and expenses, Compute net income, Compute the ending retained earnings balance, Prepare a balance sheet.

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Definitions:

Reliability Tactic

Strategies or practices aimed at ensuring a system or component performs its required function under stated conditions for a specified period.

Individual Components

Distinct parts or elements that make up a complex product, system, or assembly.

Repair Speed

The rate at which damaged or malfunctioning products or equipment are restored to working order.

Providing Redundancy

The act of incorporating extra components, systems, or processes to increase reliability and avoid failure in case of a component breakdown.