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:

Debits

Entries on the left side of an accounting ledger, representing increases in assets or expenses and decreases in liabilities or equity.

Equipment

Tangible property used in the operations of a business, often contributing to the production of goods and services, and generally considered a long-term asset.

Cash

Currency and coins, along with bank balances, checks, and money orders, that are readily available for use.

Expense Account

An account that tracks money spent or costs incurred in an organization's efforts to generate revenue, representing the cost of doing business.