Financial statements are prepared directly from the
A) general journal.
B) ledger.
C) trial balance.
D) adjusted trial balance.

Question

Quizplus · Accepted Answer

Financial statements are prepared directly from the adjusted trial balance, which is a list of all accounts with their updated balances after adjusting entries have been made. This ensures that all necessary adjustments have been made and the financial statements reflect accurate and complete information. The general journal and ledger are used to record transactions and account activity, while the trial balance is simply a list of all accounts and their balances, typically prepared before adjusting entries are made.

Financial Statements Are Prepared Directly from the