Financial Statements Are Prepared in a Certain Sequence

question 59

Multiple Choice

Financial statements are prepared in a certain sequence.Which statement is prepared first?

• A)The adjusted trial balance.
• B)The income statement.
• C)The balance sheet.
• D)The statement of cash flows.

---

Definitions:

Seventh Circuit

The Seventh Circuit refers to a division of the U.S. federal courts that covers parts of the Midwest, including states like Illinois, Indiana, and Wisconsin.

Conversion

Permanent interference with another’s use and enjoyment of his or her personal property.

Innkeepers

Entities that are regularly in the business of making lodging available to the public.

Strict Liability

Liability in which responsibility for damages is imposed regardless of the existence of negligence. Also called liability without fault.