Answered

In what order are the financial statements prepared?
A. Statement of owner's equity, balance sheet, income statement
B. Statement of owner's equity, income statement, balance sheet
C. Income statement, balance sheet, statement of owner's equity
D. Income statement, statement of owner's equity, balance sheet



Answer :

GinnyAnswer

Final answer:

Financial statements are prepared in the order of income statement, statement of owner's equity, and balance sheet.


Explanation:

Financial statements are prepared in the following order:

  1. Income statement: Presents the organization's revenues, expenses, and changes in net assets throughout a particular time period.
  2. Statement of owner's equity: Shows the changes in the owner's equity during a specific time frame.
  3. Balance sheet: Presents the organization's assets, liabilities, and net assets at a particular point in time.

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