Which of the Following Is the Correct Order of Preparation

question 27

Multiple Choice

Which of the following is the correct order of preparation of financial statements?

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

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Definitions:

Reaction Formation

A defense mechanism where an individual behaves in a manner opposite to their actual feelings or desires, often due to guilt or fear.

Defense Mechanism

Psychological strategies brought into play by individuals to cope with reality and maintain a self-image, often unconsciously to avoid distressing feelings or thoughts.

Denouncing Homosexuality

Publicly declaring homosexuality to be wrong or immoral, often seen in contexts of cultural, religious, or political opposition.

Repression

A psychological defense mechanism where an individual unconsciously blocks unwanted thoughts, desires, or memories from conscious awareness.