In this research paper, the author first addresses a current accounting situation that bothSEC and FASB do not set any regulation about the order of financial statement reporting in SECfilings. The purpose and objective of this research paper are to investigate how the order offinancial statements in SEC filings is determined and what is the connection between entitycharacteristics and the choice of reporting order. We have a challenge, which are thecontradictory points of view between accounting cycle and the standard setters. We all know thatfinancial statement must be prepared in sequence because the information in one is needed forthe next. The sequence of financial statements is income statement, statement of retainedearnings, balance sheet and statement of cash flows. However, the standard setters have beenputting more emphasis on the balance sheet approach not the income statement in the first place.At the beginning of the research, the author collects the information about the order offinancial statements reported in the 10-K filings from the EDGAR system for non-financial and
