Which of the Following Financial Statements Reports Expenses in Decreasing

question 93

Multiple Choice

Which of the following financial statements reports expenses in decreasing order of their amounts, by stating the largest expense first?

• A)statement of cash flows
• B)income statement
• C)statement of owner's equity
• D)balance sheet

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Definitions:

Asset Increase

An increase in the total value of assets owned by a company, which can occur due to acquisitions, improvements, or valuation increases.

Corresponding Decrease

A decrease in one variable or metric that occurs in response to an increase in another variable.

Liability

A financial obligation or debt that an entity is required to pay to another entity.

Change In Accounting Principle

An adjustment in the way a company recognizes, measures, presents, or discloses financial information due to a change in accounting policy.