Closing entries may be prepared from all of the following except
A) Adjusted balances in the ledger
B) Income statement and balance sheet columns of the worksheet
C) Balance sheet
D) Income and retained earnings statements

Question

Quizplus · Accepted Answer

Closing entries are prepared to close revenue and expense accounts and transfer their balances to the retained earnings account. They are usually prepared at the end of the accounting period and use the adjusted balances from the ledger or the income statement and balance sheet columns of the worksheet. The balance sheet alone does not provide enough information to prepare closing entries.

Closing Entries May Be Prepared from All of the Following