Financial Statements Are Prepared in a Certain Sequence

question 16

Multiple Choice

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

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

---

Definitions:

Weighted-Average Method

A method for computing the cost of goods sold and the remaining inventory value that uses the mean cost of all available units.

Process Costing System

An accounting system used for homogenous products that are mass-produced, assigning costs to units of product based on the process they go through.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, expressing the work done in terms of fully completed goods.

Weighted-Average Process

A method of accounting for inventory and production costs that averages costs over the units produced during a period, widely used in process manufacturing.