In What Order Are the Financial Statements Generally Prepared

question 157

Multiple Choice

In what order are the financial statements generally prepared?

• A)balance sheet,income statement,and statement of retained earnings
• B)income statement,statement of retained earnings,and balance sheet
• C)income statement,balance sheet,and statement of retained earnings
• D)statement of retained earnings,balance sheet,and income statement

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Definitions:

Variable Costs

Costs that vary directly with the level of production or sales volume, such as materials and labor directly involved in manufacturing a product.

Units

A measure of quantity used to express the amount of a product, service, or resource, often used in production and inventory contexts.

Pretax Income

Income earned by a company before taxes have been deducted.

Variable Costs

Expenses that vary directly with the level of production or sales volume, such as raw materials and sales commissions.