The Natural Progression in Items from One Statement to Another

question 41

Multiple Choice

The natural progression in items from one statement to another and preparation of financial statements is best represented by the following order:

• A)Balance sheet and statement of cash flows > statement of retained earnings > income statement
• B)Balance sheet and statement of cash flows > income statement > statement of retained earnings.
• C)Statement of retained earnings > income statement > balance sheet and statement of cash flows
• D)Income statement > statement of retained earnings > balance sheet and statement of cash flows

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Definitions:

Financial Status

The economic condition of an individual, family, or organization defined by income, assets, and liabilities.

Learned Helplessness

An acquired (hence, learned) belief that one is unable to control one’s environment.

Success

The achievement of a goal or objective, often recognized through the accomplishment of desired outcomes or the attainment of wealth, position, honors, or the like.

Ability

The possession of the means or skill to perform a task or action effectively, often innate but can also be developed through learning and practice.