In What Order Are the Financial Statements Generally Prepared

question 97

Multiple Choice

In what order are the financial statements generally prepared?

• A)Balance sheet,income statement,and statement of retained earnings
• B)Income statement,statement of retained earnings,and balance sheet
• C)Income statement,balance sheet,and statement of retained earnings
• D)Statement of retained earnings,balance sheet,and income statement

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Definitions:

Interest

The cost of borrowing money, paid by the borrower to the lender, typically expressed as an annual percentage of the loan amount.

Capital Account

An account on the balance sheet representing the owners' or shareholders' equity, including funds contributed by investors and retained earnings.

Capital Account Balance

The net result of public and private international investments flowing in and out of a country, representing changes in national ownership of assets.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and losses from the total revenue.