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

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Definitions:

Balance Sheet

A financial statement that presents a company's assets, liabilities, and shareholders' equity at a specific point in time, providing insights into its financial position.

Inventory

Goods and materials that a business holds for the ultimate goal of resale or production.

Perpetual Inventory System

A method of accounting for inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Journal Entries

Transactions registered in a ledger that form the basis of all financial reporting and accounting.