The First Financial Statement to Be Prepared at the End

question 23

Multiple Choice

The first financial statement to be prepared at the end of each accounting period is the ________.

• A)balance sheet
• B)income statement
• C)statement of changes in shareholders' equity
• D)statement of cash flows

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Definitions:

Seal

A formal mode of expressing the intention to be bound by a written promise or agreement. This expression usually takes the form of signing or affixing a wax or gummed paper wafer beside the signature, or making an engraved impression on the document itself.

Privity of Estate

A legal concept that refers to the relationship between parties whose interests in a piece of property are intertwined.

Privity of Contract

A principle stating that only parties to a contract have the right to sue or be sued under the terms of the contract.

Privity of Reversion

A legal concept relating to the rights of individuals who have a future interest in property currently possessed by another.