Asked by karter lector on Jun 01, 2024

verifed

Verified

Discuss how financial statement accounts are inter-connected along with the order that financial statements should be prepared.

Financial Statement

A record that details the financial activities and condition of a business, person, or other entity.

Accounts

Financial records of an entity that detail transactions and can be used to prepare financial statements.

  • Understand the fundamentals of preparing financial statements and their relationships.
verifed

Verified Answer

ZK
Zybrea KnightJun 03, 2024
Final Answer :
There are extensive connections between accounts in the statement of financial position and the statement of comprehensive income. For instance, accounts receivable relates to revenue account; while inventory relates to cost of goods sold. Additionally, accounts payable relates to a variety of expense accounts.