Which of the Following Financial Statements Reports Expenses in Decreasing

question 145

Multiple Choice

Which of the following financial statements reports expenses in decreasing order of their amounts,by stating the largest expense first?

• A) Statement of cash flows
• B) Income statement
• C) Statement of owner's equity
• D) Balance sheet

---

Definitions:

Universal Life

A flexible premium life insurance policy that combines protection with a cash value accumulation that earns interest.

Social Constraint

Limitations or restrictions on behavior that are enforced by social or cultural norms.

Investment Policy Statement

A document that outlines an investor’s objectives, risk tolerance, time horizon, and investment constraints, guiding the investment decisions and strategies.

Mutual Funds

Investment programs funded by shareholders that trade in diversified holdings and are professionally managed.