The Normal Order in Which the Financial Statements Are Prepared

question 61

Multiple Choice

The normal order in which the financial statements are prepared is:

• A) Balance sheet, income statement, statement of changes in equity.
• B) Income statement, statement of changes in equity, balance sheet.
• C) Income tax return, income statement, balance sheet.
• D) Income statement, statement of cash flows, balance sheet.

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Definitions:

Symmetric

Referring to a shape or function that is mirrored equally on both sides of a central axis.

Skewed

A description of data that are not symmetrically distributed, often showing a longer tail on one side of the distribution's peak.

Negatively Skewed

A distribution where the tail is longer on the left side of the distribution, indicating that the majority of data points are located on the right.

Positively Skewed

A type of distribution in which the right tail (higher values) is longer than the left tail, indicating that a majority of the data points are clustered to the left of the mean.