UNIT II

Unit II

Unit II

There are no hard and fast rules, but generally, they are presented in the following order: Balance sheet then Income statement, or vice versa,followed by Statement of Retained Earnings then Statement of cash flows. Income Statement is first because you need to find net income for the period to complete the Balance Sheet, and then you need info from the Balance Sheet to complete the Statement of Retained Earnings.

Perhaps the reason is that the net income from the income statement is needed so that it can be added to the retained earnings balance. The ending retained earnings balance ...