Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 37 - No. 18)
What is the order in which the financial statements are typically prepared?
Income Statement, Balance Sheet, Statement of Cash Flows, Statement of Retained Earnings
Income Statement, Statement of Retained Earnings, Balance Sheet, Statement of Cash Flows
Balance Sheet, Income Statement, Statement of Cash Flows, Statement of Retained Earnings
Statement of Cash Flows, Income Statement, Balance Sheet, Statement of Retained Earnings
Explanation
The Income Statement is prepared first, which informs the Statement of Retained Earnings; that balance is used to prepare the Balance Sheet; and all three statements are used to prepare the Statement of Cash Flows.
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