Which of the following statements is incorrect?
A) An unadjusted trial balance is a list of accounts and balances prepared before adjustments are recorded.
B) An adjusted trial balance is a list of accounts and balances prepared after adjusting entries have been recorded and posted to the ledger.
C) Each trial balance amount is used in preparing the financial statements.
D) Financial statements should be prepared directly from information in the unadjusted trial balance.
E) Financial statements can be prepared directly from information in the adjusted trial balance.

Question

Quizplus · Accepted Answer

Financial statements should not be prepared directly from information in the unadjusted trial balance because it does not reflect the necessary adjustments that are required for accurate financial reporting. The adjusted trial balance should be used instead.

Which of the Following Statements Is Incorrect