Which of the Following Financial Statements Is Usually Prepared Last

question 104

Multiple Choice

Which of the following financial statements is usually prepared last?

• A)Income statement.
• B)Statement of retained earnings.
• C)Income tax return.
• D)Balance sheet.

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Definitions:

Deferred Tax Asset

A financial item on a company's balance sheet representing taxes paid or carried forward that can be used to offset future tax liabilities.

Tax-Exempt Municipal

Refers to income earned from municipal bonds that is exempt from federal income tax and, in many cases, state and local taxes.

Pretax Financial Income

The amount of income a company has earned before any taxes have been deducted, often used for internal reporting.

Taxable Income

The amount of an individual's or entity's income used to determine how much tax is owed, calculated by deducting allowable deductions from gross income.