Which of the following is the correct order for preparing the financial statements listed? Balance sheet, statement of stockholders' equity, and income statement. income statement, statement of stockholders' equity, and balance sheet Balance sheet, income statement, and statement of stockholders' equity. Statement of stockholders' equity, income statement, and balance sheet.

income statement, statement of stockholders' equity, and balance sheet

Explanation:

For preparing the financial statements, the sequence is shown below:

1. Income statement: It records expenses and revenues for a particular period of time

2. Statement of stockholders' equity: It records the net income, dividend, and additional capital, if any and finds out the ending balance of retained earnings and stockholder equity

3. Balance sheet: It reported assets and liabilities that reflects the financial position and performance of the company

4. Cash flow statement: It reports inflow and outflow of cash through operating, investing and financing activities