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:

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