A) income statement B) balance sheet C) statement of retained earnings D) The financial statements can prepared in any order. AR-C 70, Preparation of Financial Statements, is the guidance for the preparation of financial statements. income statement, statement of … Guidance. statement of owner's equity, balance sheet, income statement. income statement, balance sheet, statement of owner's equity. The order the financial statements are prepared is as follows: a.income statement, balance sheet, statement of owner's equity b.income statement, statement of owner's equity, balance sheet c.balance sheet, income statement, statement of owner's equity d.statement of owner's equity, income statement… When the financial statements are issued internally, the management team usually only sees the income statement and balance sheet, since these documents are relatively easy to prepare. Preparing the Financial Statements. Expert Answer . A Cash Flow Statement is a financial statement which is mandatory to be prepared according to the law along with the other two financial statements. The fourth financial statement that a business needs is a statement of owner's equity, also known as a statement of changes in equity, or a statement of shareholders' equity. This process is also called as the bookkeeping cycle. B. Why are they prepared in that order? Which financial statement is prepared last? Once the statements have been prepared, Paul can add the financial statements to the accounting worksheet and close his books for the year by recording closing entries in the next accounting cycle step. The order in which financial statements should be prepared is balance sheet, income statement, statement of owner's equity. Accounting > Financial Statements. Financial statements are the reports of the entity’s financial transactions and events, and they are prepared and used for many different purposes. Cash flow statement shows the movement of cash and cash equivalents, it is an in-depth inflow and outflow for a given period of time. In what order are the financial statements prepared? There is more technical information about how to prepare financial statements in the next section of my accounting course. The financial statements are prepared from the _____. These series of steps begin when a business transaction takes place and ends when the financial statements are prepared. This is the least used of the financial statements, and is commonly only included in the audited financial statement package. Previous question Next question Get more help from … The collective process of recording, processing, classifying and summarizing the business transactions in financial statements is known as accounting cycle. Cash Flow Statement or Statement Accounting for Variations in Cash. Applicability - AR-C Section 70. 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