The Natural Progression in Items from One Statement to Another

Multiple Choice

The natural progression in items from one statement to another and preparation of financial statements is best represented by the following order:

A) Balance sheet and statement of cash flows > statement of retained earnings > income statement
B) Balance sheet and statement of cash flows > income statement > statement of retained earnings.
C) Statement of retained earnings > income statement > balance sheet and statement of cash flows
D) Income statement > statement of retained earnings > balance sheet and statement of cash flows