Question $2$

The correct data flow from one financial statement to the next is $($order of financial statement

preparation$)$:

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

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

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

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

the financial statements can be prepared in any order.

Question $3$

The normal balance of an expense account is a

because expenses decrease

credit; retained earnings

debit: assets