Four Financial Statements Are Usually Prepared for a Business

question 66

Multiple Choice

Four financial statements are usually prepared for a business. The statement of cash flows is usually prepared last. The retained earnings statement (RE) , the balance sheet (B) , and the income statement (I) are prepared in a certain order to obtain information needed for the next statement. In what order are these three statements prepared?

• A) I, RE, B
• B) B, I, RE
• C) RE, I, B
• D) B, RE, I

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Definitions:

Yom Kippur

The holiest day of the Jewish year, also known as the Day of Atonement, during which individuals reflect upon their actions and seek forgiveness for their sins.

Accommodations

Adjustments or modifications made to spaces, policies, or practices to support individuals’ specific needs, such as accessibility for people with disabilities.

Workplace

A place where people engage in physical or mental activities to produce goods or provide services in exchange for compensation.

Prohibiting

The act of formally forbidding something by law, rule, or other authority.