Question

Sadie is looking over the expenses and revenue of the company in order to prepare the company’s income statement. After this is completed, she will likely look at all other transactions so that other reports can be completed as well. What is this an example of?

Answer 1

Answer:

To prepared statement of Retained earning, items like dividend paid must be considered.

To prepare Balance Sheet, Assets (Non-current & current assets), Liabilities (Non-current & current liabilities) and  Common stock items must be considered.

To prepare cash flow statement, changes in operating, financing  and investment activities must be adjusted for.

Explanation: