Which Financial Statement Is Prepared Last

question 133

Multiple Choice

Which financial statement is prepared last?

• A) income statement
• B) balance sheet
• C) statement of owner's equity
• D) The financial statements can be prepared in any order.

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Definitions:

Parol Evidence Rule

A legal principle that prohibits the introduction of oral or extrinsic evidence to alter or contradict the terms of a written contract.

Specific Provisions

Special clauses in a contract or law that are designed to cover particular details and scenarios, differing from general provisions.

Oral Contract

A verbal agreement between parties that is legally binding, provided it meets all requirements of a valid contract.

Reasonable Reliance

Reasonable reliance involves acting based on the expectation that the information or promises provided by another party are accurate and trustworthy.