Four Financial Statements Are Usually Prepared for a Business

question 199

Multiple Choice

Four financial statements are usually prepared for a business. The statement of cash flows is usually prepared last. The statement of owner's equity (OE) , 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,OE, B
• B) B, I, OE
• C) OE, I, B
• D) B,OE, I

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Definitions:

"g" Factor

A concept in psychology referring to general intelligence, representing a core of common skill underlying all specific cognitive abilities.

"g" Factor

The general intelligence factor believed to underlie specific mental abilities and talents.

General

Pertaining to or affecting all or most people, places, or things; widespread.

Spearman's "g" Factor

A theory proposed by Charles Spearman that suggests human intelligence is a single general cognitive ability that can be measured and quantitatively expressed.