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:

Brand Equity

The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent.

Consumers

Individuals or groups who purchase goods or services for personal use and not for manufacturing or resale.

Promise

A declaration or assurance that one will do something or that a particular thing will happen.

Value

The importance, worth, or usefulness of something, often considered in terms of how much something is worth to someone.