Closing entries may be prepared from all but which one of the following sources?
A) Adjusted balances in the ledger
B) Income statement and balance sheet columns of the worksheet
C) Balance sheet
D) Income and owner's equity statements

Question

Quizplus · Accepted Answer

Closing entries cannot be prepared directly from the balance sheet. They are prepared based on the information in the income statement and owner's equity statements, as well as the adjusted balances in the ledger. The worksheet is also used as a tool to help prepare the closing entries.

Closing Entries May Be Prepared from All but Which One