The Order in Which Financial Statements Are Prepared Is Determined

question 50

Short Answer

The order in which financial statements are prepared is determined by the fact that information from one statement is needed to prepare the next. Which statement is prepared last? ____________ .

---

Definitions:

Cognitive-Dissonance Theory

The view that we are motivated to make our cognitions or beliefs consistent with each other and with our behavior.

Effort Justification

In cognitive-dissonance theory, the tendency to seek justification (acceptable reasons) for strenuous efforts.

Self-Serving Bias

The tendency to view one’s successes as stemming from internal factors and one’s failures as stemming from external factors.

Sternberg's Triangular Model

A theory of love suggesting that intimacy, passion, and commitment are the three components that define all human love relationships.